Is the right to use Beehive Homes trademarks dependent on Beehive Homes having or acquiring rights to them?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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Under the Franchise Agreement, WE grant to YOU a nonexclusive right to operate a Home under the name "Bee Hive Homes" and under any other trade names, trademarks and service marks and logos currently used or that may hereafter be used in the operation of the Homes insofar as available on a state by state basis and only to the extent WE have rights or may acquire rights to the same. YOU must use all names, marks, logos and symbols in full compliance with rules prescribed by US. YOU are prohibited from using any licensed name or mark as part of YOUR corporate name but may, with OUR prior written consent, have the nonexclusive use of the name "Bee Hive Homes" as part of an assumed name registered with applicable governmental authorities having jurisdiction over YOUR location and must execute any document necessary to enable US or any other franchisee to use the name "Bee Hive Homes." YOU are prohibited from using any licensed name or mark in connection with the sale of any unauthorized product or service or in any manner not expressly authorized in writing by US.
Source: Item 13 — TRADEMARKS (FDD pages 22–23)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee's right to use Beehive Homes' trademarks is dependent on Beehive Homes having or acquiring rights to them. The Franchise Agreement grants a nonexclusive right to operate a home under the "Bee Hive Homes" name, as well as other trademarks and service marks, but only to the extent that Beehive Homes has or may acquire rights to them on a state-by-state basis. Franchisees must use the names, marks, logos, and symbols in compliance with Beehive Homes' rules. Franchisees cannot use any licensed name or mark as part of their corporate name but may use the name "Bee Hive Homes" as part of an assumed name with Beehive Homes' prior written consent.
This means that a franchisee's ability to fully utilize the Beehive Homes branding is subject to the franchisor's existing trademark rights and any future rights they may obtain. If Beehive Homes does not have the rights to a trademark in a particular state, the franchisee may not be able to use it there. This could impact marketing and brand recognition efforts in certain areas.
The FDD also states that if the rights to use the trademark are challenged, the franchisee may have to change to an alternative trademark, which may increase expenses. Beehive Homes may modify or discontinue any use of the names and marks, and/or use one or more additions to or substitutes for the names and marks. If this happens, the franchisee will be responsible for changing signs and printed matter to comply with this obligation, but Beehive Homes will reimburse the franchisee for tangible costs in doing so.
Prospective franchisees should carefully consider these conditions and the potential impact on their business. It would be prudent to inquire about the specific states where Beehive Homes has established trademark rights and to understand the process and potential costs associated with changing trademarks if required.