What is the scope of the exclusive right granted to Beehive Homes regarding trademarks?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
RS.
WE have been granted an exclusive right, pursuant to our agreement with Bee Hive Homes of America, Inc. which is described in Item 1, first paragraph under the heading - Affiliates, in this Franchise Disclosure Document, to use or license the use of the trademarks, service marks, trade names, logotypes or other commercial symbols in any manner material to the franchise. The termination, expiration or nonrenewal of our license agreement will not affect your rights to use of the trademarks, service marks and trade names as described in YOUR Franchise Agreement with US.
YOU must notify US in writing of any claim, demand or suit based upon or in connection with any or all rights which YOU have to use the trademarks, service marks, trade names, logotypes or commercial symbols. YOU must also notify US in writing of the use of, or claims of rights to, a trademark identical to or confusingly similar to the names and marks. WE have the right to defend any such claims, demands or suits. However, WE are not obligated by the Franchise Agreement or otherwise to protect YOU against any such claim, demand or suit, nor are WE obligated by the Franchise Agreement or otherwise to protect YOU against claims of infringement or unfair competition. YOU are given the right to protect YOURSELF, at YOUR sole cost, from any claims if WE elect not to.
Source: Item 13 — TRADEMARKS (FDD pages 22–23)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes has been granted an exclusive right to use or license its trademarks, service marks, trade names, logotypes, or other commercial symbols in any manner material to the franchise. This exclusive right is based on an agreement between Beehive Homes and Bee Hive Homes of America, Inc., as detailed in Item 1 of the FDD under the heading "Affiliates." This agreement allows Beehive Homes to utilize these trademarks for franchising purposes. The FDD also states that the termination, expiration, or nonrenewal of the license agreement between Beehive Homes and Bee Hive Homes of America, Inc. will not affect the franchisee's rights to use the trademarks, service marks, and trade names as described in the Franchise Agreement.
Beehive Homes grants franchisees a nonexclusive right to operate a home under the name "Bee Hive Homes" and other trademarks and service marks currently or hereafter used, insofar as available on a state-by-state basis and only to the extent Beehive Homes has or may acquire rights to them. Franchisees must use all names, marks, logos, and symbols in full compliance with the rules prescribed by Beehive Homes. Franchisees are prohibited from using any licensed name or mark as part of their corporate name but may, with prior written consent from Beehive Homes, have the nonexclusive use of the name "Bee Hive Homes" as part of an assumed name registered with applicable governmental authorities.
It is important to note that franchisees must notify Beehive Homes in writing of any claims, demands, or suits related to the use of trademarks. While Beehive Homes has the right to defend such claims, they are not obligated to protect franchisees against claims of infringement or unfair competition. Franchisees have the right to protect themselves at their own cost if Beehive Homes chooses not to defend them. If Beehive Homes decides to modify or discontinue the use of any names and marks, franchisees must comply, and Beehive Homes will only reimburse tangible costs in changing signs and printed matter. The trademark "Bee Hive Homes®" is registered with the United States Patent and Trademark Office (Reg. No. 4,663,072) and has been renewed.