factual

When does Beehive Homes agree to impart and disclose the Trade Secrets to the Franchisee?

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

3.2. Grant of Licenses. Subject to the terms and conditions contained in this Agreement, Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, the nonexclusive right and sub-license to use (but only in connection with the Home and the System) the Names and Marks, Trade Secrets and Copyrighted Materials (as such may presently exist or hereafter be modified or acquired by Franchisor and be licensed for use to the Franchisee) but only to the extent Franchisor has rights or may acquire rights to the same. Franchisor agrees to impart and disclose to Franchisee the Trade Secrets prior to opening of the Home for business.

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

What This Means (2025 FDD)

According to the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes agrees to disclose its trade secrets to the franchisee prior to the opening of the Beehive Homes location for business. This is part of the nonexclusive right and sub-license granted to the franchisee to use the Names and Marks, Trade Secrets, and Copyrighted Materials in connection with the operation of the Beehive Homes business.

This disclosure is crucial for the franchisee to understand and implement the Beehive Homes system effectively. Trade secrets can include proprietary operational methods, marketing strategies, or unique care protocols that give Beehive Homes a competitive edge. Receiving this information before opening ensures the franchisee can properly train staff and establish the business according to Beehive Homes standards from day one.

However, the franchisee's use of these trade secrets is subject to certain conditions. The license is nonexclusive, meaning Beehive Homes can also use these trade secrets or grant licenses to others. The franchisee must also protect the confidentiality of the trade secrets and is only allowed to disclose them as specifically permitted in the franchise agreement. Upon termination or expiration of the agreement, the franchisee must cease using and return or destroy all materials related to the trade secrets.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.