What does the Beehive Homes agreement say about protecting the goodwill of the Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
6.3. Ownership and Use of Goodwill.
(a) Ownership of Goodwill. Franchisee acknowledges and agrees that any and all goodwill associated with the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials, including any goodwill that might be deemed to have arisen through Franchisee's activities, shall inure directly and exclusively to the benefit of, and be owned solely by, Franchisor, except as otherwise provided herein or by applicable law.
(b) Preservation of Goodwill. Franchisee acknowledges and agrees that valuable goodwill is attached to the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials and that it will use the same solely in the manner prescribed by Franchisor, and will operate the Home and provide the services under the Names and Marks, Trade Secrets and Copyrighted Materials in strict accordance with the System, terms and conditions of this Agreement, the Manual and other operational Standards established by Franchisor from time to time. Franchisee covenants to protect and preserve the goodwill of the Names and Marks.
6.4. Web Sites. For purposes of this Section, "Site(s)" means domain names, the World Wide Web, the Internet, computer network/distribution systems, or any other electronic communications sites or means.
- (a) Franchisee may not register, own, or maintain any Sites that relate to the Home or that include any of the Names and Marks. The only domain names, Sites, or Site contractors that Franchisee may use relating to the Home or this Agreement are those Franchisor assigns or otherwise approves in writing. Franchisee acknowledges that it may not, without a legal license or other legal right, post on its Sites any material in which any third party has any direct or indirect ownership interest. Franchisee must incorporate on its Sites any information Franchisor requires in the manner Franchisor deems necessary to protect its Names and Marks.
- (b) Any use of the Marks on anySite must conform to Franchisor's requirements, including the identity and graphics Standards for all Homes. Given the changing nature of this technology, Franchisor reserves the right to withhold its approval, and to withdraw any prior approval, and to modify its requirements.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchise agreement emphasizes the protection and ownership of goodwill associated with the Beehive Homes brand. The agreement states that all goodwill related to the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials inures directly and exclusively to the benefit of, and is owned solely by, Beehive Homes. This means that any positive reputation or customer loyalty generated through the franchisee's operation legally belongs to Beehive Homes.
To preserve this goodwill, franchisees must operate their Homes strictly according to the standards set by Beehive Homes, including the terms and conditions of the franchise agreement, the manual, and other operational standards. Franchisees are obligated to protect and preserve the goodwill of the Names and Marks. This includes using the trademarks and service marks correctly and maintaining the quality of services expected by customers.
Furthermore, franchisees are restricted in their use of websites and domain names. They cannot register, own, or maintain any sites that relate to the Home or include any of the Names and Marks without written approval from Beehive Homes. Any approved use of the Marks on a website must conform to Beehive Homes' requirements, including identity and graphics standards. Beehive Homes retains the right to withhold or withdraw approval and to modify its requirements regarding website usage, reflecting the changing nature of technology and the need to protect its brand identity online.