What specific statutes did the National Fair Housing Alliance allege Beehive Homes violated?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
On May 15, 2020, a Complaint was filed in the U.S. District Court for the District of Utah (Civil Action No. 2:20-CV-00312-DBP) by the National Fair Housing Alliance against Bee Hive Homes, Inc. and one of its franchise homes in Utah alleging discrimination in violation of The Fair Housing Act ("FHA'"), 42 U.S.C. §3602; Section 504 of the Rehabilitation Act of 1973 ("RA"), 29 U.S.C. §794; and Section 1557 of the Patient Protection and Affordable Care Act ("'ACA"), 42 U.S.C. §18116 against fictitious deaf persons. Bee Hive Homes, Inc. denied any liability in the matter. The matter was settled and on March 26, 2021, the Court entered its Order granting a motion for dismissal with prejudice and retention of jurisdiction by the Court to enforce the settlement agreement if needed.
Source: Item 3 — LITIGATION (FDD pages 10–11)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the National Fair Housing Alliance filed a complaint against Beehive Homes, Inc. alleging violations of several federal statutes. The complaint specifically cited The Fair Housing Act (FHA), codified as 42 U.S.C. §3602. Additionally, the complaint alleged violations of Section 504 of the Rehabilitation Act of 1973 (RA), codified as 29 U.S.C. §794. Finally, the complaint included an allegation of violations of Section 1557 of the Patient Protection and Affordable Care Act (ACA), codified as 42 U.S.C. §18116. These allegations were made in connection with a claim of discrimination against fictitious deaf persons.
Beehive Homes, Inc. denied any liability in the matter. The case was eventually settled, and the court granted a motion for dismissal with prejudice on March 26, 2021. The court retained jurisdiction to enforce the settlement agreement if necessary. This means that while Beehive Homes settled the case, the court could intervene if the terms of the settlement were not followed.
For a prospective franchisee, this litigation highlights the importance of compliance with fair housing laws and non-discrimination statutes. While the case was settled, it demonstrates the potential legal risks associated with operating a Beehive Homes franchise and the need to ensure that all practices and policies are in accordance with applicable laws. Franchisees should ensure they understand and adhere to all federal, state, and local regulations regarding fair housing and non-discrimination to avoid similar legal challenges.