What must a Bee Organized franchisee do with the Know-How upon expiration or termination of the agreement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
s will jeopardize the System and cause irreparable harm to Franchisor and franchisees of Bee Organized Businesses. Accordingly, Franchisee and Franchisee's Owners and Spouses agree to comply with the restrictive covenants set forth in this Agreement, including this Article 6.
6.B. RESTRICTIVE COVENANTS: KNOW-HOW
Franchisee agrees that, at all times, both during the Term of this Agreement and, after its expiration or termination, Franchisee: (a) shall not use the Know-How in any business or capacity other than the operation of the Franchised Business pursuant to this Agreement and as instructed by Franchisor; (b) shall maintain the confidentiality of the Know-How at all times; (c) shall not make unauthorized copies of documents containing any Know-How; (d) shall take all reasonable steps that Franchisor requires from time to time to prevent unauthorized use or disclosure of the Know-How; and (e) shall stop using the Know-How immediately upon the expiration, termination or Transfer of this Agreement. Franchisee agrees that the foregoing covenants shall also apply to: (a) Franchisee's Owners and Spouses and, that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Know-How was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.
6.C. RESTRICTIVE COVENANTS: CONFIDENTIAL INFORMATION
Franchisee agrees that, at all times, both during the Term of this Agreement and after its expiration or termination, Franchisee: (a) shall not use the Confidential Information in any business or capacity other than the Bee Organized Business operated by Franchisee;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the franchisor's Know-How both during the term of the agreement and after its expiration or termination. The term "Know-How" is defined as all of Bee Organized's trade secrets and proprietary information relating to the development, establishment, marketing, promotion and/or operation of a Bee Organized Business including, but not limited to, methods, techniques, specifications, procedures, policies, marketing strategies and information reflected in, comprising or constituting a part of the System. Know-How shall further include information contained in the Operations Manual and the Confidential Information.
Upon expiration, termination, or transfer of the Franchise Agreement, the franchisee must immediately stop using the Know-How. Additionally, the franchisee must not use the Know-How in any business or capacity other than the operation of the Franchised Business pursuant to the Franchise Agreement and as instructed by Bee Organized. The franchisee is also obligated to maintain the confidentiality of the Know-How at all times and prevent unauthorized use or disclosure.
These restrictions also apply to the franchisee's owners, spouses, directors, officers, employees, and agents if they had access to the Know-How. This is a standard practice in franchising to protect the franchisor's proprietary information and maintain the integrity of the brand. Franchisees should carefully review these restrictive covenants to understand their obligations and potential limitations after the franchise agreement ends.