What is the Bee Organized franchisee's obligation regarding confidentiality of the Know-How?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 confidentiality of the Know-How, both during the term of the Franchise Agreement and after its expiration or termination. The franchisee must not use the Know-How in any business or capacity other than operating the Bee Organized franchise as instructed by the franchisor. They are required to maintain the confidentiality of the Know-How at all times and must not make unauthorized copies of any documents containing it.
Bee Organized franchisees must take all reasonable steps that the franchisor requires to prevent unauthorized use or disclosure of the Know-How. Upon expiration, termination, or transfer of the Franchise Agreement, the franchisee must immediately stop using the Know-How. These obligations extend not only to the franchisee but also to the franchisee's owners and spouses, who must execute and deliver a Franchise Owner and Spouse Agreement and Guaranty.
Furthermore, these confidentiality obligations apply to the franchisee's directors, officers, employees, and agents if disclosing the Know-How was necessary for the franchise's operations and if they have previously executed and delivered a Confidentiality Agreement. This ensures that all parties involved in the Bee Organized franchise are aware of and adhere to the confidentiality requirements surrounding the Know-How, protecting the franchisor's proprietary information and trade secrets.