What activities or practices are Beehive Homes franchisees prohibited from engaging in?

Franchisee shall operate the Home under the trade name "BEE HIVE HOMES of __________________________" (the "Trade Name") and shall use no other name in connection with any operations conducted by Franchisee without the prior written approval of Franchisor. Franchisor may change the Trade Name or the way in which it is depicted, at its sole option. Franchisee shall use the Trade Name and such other of the Names and Marks as Franchisee may be authorized to use exclusively for the purpose of operating the Home pursuant to the franchise granted by this Agreement.

Franchisee shall display the Franchisee's Trade Name for all purposes, and on all signs, stationary, business cards, advertising materials and other media, in strict compliance with the requirements set forth in the Manual.

Franchisee shall file and keep current, in the county and/or state in which Franchisee's Home is located and at such other places as may be required by law, a "fictitious name certificate" or comparable instrument, for the Trade Name. Franchisee shall not, without Franchisor's prior written approval, use any of the Names and Marks, or the name "BEE HIVE HOMES®," or any form thereof in connection with (i) any corporate, partnership or other entity name or in any corporate or other entity filing with any political subdivision; (ii) any internet-related name (including a domain name); or (iii) any other business. Franchisee hereby agrees that if this Agreement is terminated for any reason, Franchisee shall immediately discontinue use of the Trade Name, as well as the Names and Marks.

Franchisee shall not discriminate on the basis of race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations, specifically, but not by way of limitation, employment relations with staff and providing housing to residents.

Franchisee will treat as confidential the Standards, the Manual and all other Proprietary Information.

Proprietary Information means all information or materials concerning development, operation, marketing and licensing of the System, including the Standards and the Manual, whether developed by Franchisor, Franchisee or another Person.

Franchisee acknowledges and agrees that it does not acquire any right or interest in the Proprietary Information other than the right to utilize the same in the development and operation of the Home under the terms of this Agreement.

Franchisee agrees that it will not use the Proprietary Information in any business or for any purpose other than in the development and operation of the Home under the System and will maintain the absolute confidentiality of the ProprietaryInformation during and after the Term.

Franchisee will not make unauthorized copies of any portion of the Proprietary Information; and will adopt and implement all procedures Franchisor may periodically establish in its business judgment to prevent unauthorized use or disclosure of the Proprietary Information, including restrictions on disclosure to employees and the use of non-disclosure and non-competition clauses in agreements with employees, agents and independent contractors who have access to the Proprietary Information.

Franchisee covenants to comply with all applicable statutes, ordinances, rules and regulations of federal, state and local governments and agencies thereof which in any way regulate or affect the operation of its franchise business and agrees not to engage in any activity or practice which results in violation of any such statutes, ordinances, rules and regulations or which results in or may reasonably be anticipated to result in any public criticism of the Franchisor's System or any part thereof.

Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Shareholders may not, either voluntarily or by operation of law, make or permit:

• a) any further transfer or assignment of the Franchise or the Franchise Agreement;
• b) any pledge or encumbrance of the Franchise;
• c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Shareholder;
  • d) the creation of new or additional equity interests in Assignee; or
• e) any amendment of the terms of any organizational documents relating to Assignee.

Source: Item 23 — RECEIPTS (FDD pages 34–123)