Can Beehive Homes add, alter, delete, or otherwise modify elements of the System?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
of such termination.
VI. PROPRIETARY PROPERTY AND CONFIDENTIALITY
- 6.1. Ownership and Use of Modifications and Alterations to Home and System. Franchisee acknowledges and agrees that as among Franchisor and its Affiliates, and Franchisee and its Affiliates, all modifications and alterations to the design of the Home or to the System, whether or not incorporated into the Home or the System and whether made by Franchisor, its Affiliates or Franchisee and its Affiliates, are validly and exclusively owned by Franchisor, and Franchisee has only the nonexclusive right to use such modifications and alterations during the Term of this Agreement. This Section confers no ownership rights in the real propertycomprising the Home upon Franchisor.
- 6.2. Ownership and Use of Names and Marks, Trade Secrets and Copyrighted Materials. Franchisee acknowledges and agrees that the Names and Marks, Trade Secrets and Copyrighted Materials are validly owned by Franchisor and that Franchisee has only the nonexclusive right to use such Names and Marks, Trade Secrets, and Copyrighted Materials as provided in this Agreement. Franchisee further acknowledges and agrees that Franchisor's rights to the Names and
Marks, Trade Secrets and Copyrighted Materials are acquired by license from its Affiliate. Franchisee further acknowledges and agrees that all trademarks, service marks, trade names, including the Trade Name, and copyrights, together with all ancillary signs, symbols, slogans, phrases, emblems, designs and other indicia developed by or for Franchisee for use in connection with the Home and the System are the sole and exclusive property of Franchisor and may be used by Franchisee only during the Term of this Agreement and only as provided in this Agreement. Immediately upon termination or expiration of this Agreement, the Franchisee shall cease and desist from using said Names and Marks, Trade Secrets and Copyrighted Materials and shall return to Franchisor or destroy, at the Franchisor's election, all documents, instructions, displays, and advertising items and the like relating to the Names and Marks, Trade Secrets and Copyrighted Materials.
- (a) Noninterference. The Franchisee expressly covenants and agrees that both during the Term of this Agreement and after the termination or expiration hereof Franchisee shall not: (a) directly or indirectly contest or aid in contesting the validity of Franchisor's and its Affiliates' ownership of the Names and Marks, Trade Secrets or Copyrighted Materials; nor (b) in any manner interfere with or attempt to prohibit the use of the Names and Marks, Trade Secrets or Copyrighted Materials by any other existing or future franchisee or other licensee or sub-licensee of the Franchisor in any area or location.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes retains ownership of any modifications or alterations made to the design of the home or the system, regardless of who makes them. Franchisees are only granted a nonexclusive right to use these modifications during the term of the agreement. This applies whether the changes are made by Beehive Homes, its affiliates, the franchisee, or the franchisee's affiliates. This ensures that Beehive Homes maintains control over the brand's standards and operational procedures.
Beehive Homes also provides general architectural and design drawings as guidelines for the required "trade dress" of the home. Any changes to these guidelines require prior written approval from Beehive Homes. Additionally, Beehive Homes will provide an itemization of all furnishings, equipment, and supplies to be used in the operation of the home. This allows Beehive Homes to ensure uniformity and quality across all franchised locations.
Furthermore, the franchisee acknowledges that all trademarks, service marks, trade names, and copyrights related to the Beehive Homes system are the sole and exclusive property of Beehive Homes. Franchisees can only use these materials during the term of the agreement and as provided within the agreement. Upon termination or expiration of the agreement, the franchisee must cease using these materials and return or destroy all related documents and advertising items at Beehive Homes' election. This protects Beehive Homes' intellectual property and brand identity.
In practical terms, this means a prospective Beehive Homes franchisee has limited autonomy to change the established system or design of the home without explicit approval from Beehive Homes. While franchisees can propose modifications, the ultimate decision rests with Beehive Homes. This is a common practice in franchising, as it helps maintain brand consistency and quality control across all locations. Franchisees should be aware of these restrictions and consider them when evaluating the franchise opportunity.