Under what condition will Beehive Homes reimburse a franchisee for expenses related to infringement disputes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Franchisee will immediately notify Franchisor of any infringement or dilution of or challenge to its use of any of the Names and Marks and will not, absent a court order or Franchisor's prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim. Franchisor will take the action it deems appropriate with respect to such challenges and claims and has the sole right to handle disputes concerning use of all or any part of the Names and Marks or the System. Franchisee will fully cooperate with Franchisor and its Affiliates in these matters. Franchisor will reimburse Franchisee for expenses incurred by it as the direct result of activities undertaken by it at Franchisor's prior written request and specifically relating to the dispute at issue. Franchisor will not reimburse Franchisee for any other expenses incurred by it for cooperating with Franchisor or its Affiliates.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee may be reimbursed for expenses related to infringement disputes under specific conditions. Beehive Homes will reimburse a franchisee for expenses they incur as a direct result of activities undertaken at Beehive Homes' prior written request, and specifically relating to the dispute at issue. This means that if Beehive Homes asks the franchisee to take certain actions related to an infringement dispute, and does so in writing beforehand, Beehive Homes will cover the expenses that directly result from those actions.
However, the FDD also states that Beehive Homes will not reimburse the franchisee for any other expenses incurred while cooperating with Beehive Homes or its affiliates. This implies that any expenses the franchisee incurs on their own initiative, or without prior written approval from Beehive Homes, will not be reimbursed. This could include legal fees, investigation costs, or other related expenses.
This arrangement gives Beehive Homes control over how infringement disputes are handled and what expenses are covered. It is important for a prospective franchisee to understand that they must obtain written approval from Beehive Homes before taking any action or incurring any expenses related to an infringement dispute if they want to be reimbursed. Franchisees should carefully document all requests and approvals to ensure proper reimbursement.