Are the shareholders, directors, officers, employees, agents, and representatives of Beehive Homes liable in litigation commenced by the franchisee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
The sole entity against which the Franchisee may seek damages or any remedy under law or equity for any arbitrable claim is Franchisor or its successors or assigns. The Franchisee agrees that the shareholders, directors, officers, employees, agents and representatives of the Franchisor and of its affiliates, shall not be liable on or named as a party in any litigation or other proceedings
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the shareholders, directors, officers, employees, agents, and representatives of the franchisor and its affiliates are protected from liability in litigation or other proceedings initiated by the franchisee.
Specifically, the FDD states that the franchisee can only seek damages or remedies from Beehive Homes itself, or its successors or assigns, for any arbitrable claim. This means that if a franchisee has a dispute that goes to arbitration, they cannot sue the individuals associated with Beehive Homes; they can only pursue action against the company.
This provision aims to shield the individuals working for Beehive Homes from personal liability, which is a common practice in franchising to protect the franchisor's personnel and maintain a clear distinction between the company and its employees or stakeholders. However, this protection is limited to arbitrable claims, and Beehive Homes may bring an action for injunctive relief in any court having jurisdiction to enforce the Franchisor's trademark or proprietary rights.