What are the consequences if I fail to maintain the confidentiality of Beehive Homes' proprietary information?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
8.5. Confidentiality. 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.
- 8.6. Ownership of Home and Location. Franchisee will own, directly or indirectly, fee simple title to the real property and improvements (the "Real Property") that comprise the Home and
the Location, together with all personal property ("Personal Property") used in connection with the operation of the Franchise, at all times during the Term of this Agreement, subject to such liens and encumbrances as the Franchisor has agreed to in writing.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 23–24)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees must maintain the confidentiality of the Beehive Homes system, including its standards, manuals, and other proprietary information. This information encompasses all materials related to the development, operation, marketing, and licensing of the Beehive Homes system. Franchisees acknowledge that they only have the right to use this information for operating their Beehive Homes franchise and agree not to use it for any other business or purpose. This obligation extends both during and after the term of the Franchise Agreement. Franchisees must also prevent unauthorized copies or disclosure of proprietary information.
To ensure confidentiality, Beehive Homes franchisees must implement procedures to prevent unauthorized use or disclosure of proprietary information. This includes restricting disclosure to employees and using non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to the proprietary information. Franchisees must also ensure that their employees sign Beehive Homes' standard Non-Competition and Non-Disclosure Agreement before they participate in any training or perform any work at the Home. A copy of this agreement must be delivered to Beehive Homes within one week of its execution or on the first day of employment, whichever is sooner.
If a franchisee, assignee, or any related shareholder, partner, or member breaches any of the conditions, representations, agreements, or warranties contained in the Assignment, Beehive Homes is entitled to all relief and remedies available by law and to all relief and remedies granted to Beehive Homes by the Franchise Agreement. This indicates that failure to maintain confidentiality could lead to legal action and other remedies available to Beehive Homes under the law and the Franchise Agreement.