What are the consequences if a Beehive Homes franchisee violates confidentiality after the termination of the Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ms 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. Franchisee shall not transfer any interest in such Real Property or Personal Property except in compliance with this Agreement. The Franchisee shall maintain legal possession and Control of the Home and the Location at all times during the Term of this Agreement and shall promptly deliver to Franchisor a copy of any notice of default received from any mortgagee or other lien holder.
- 8.7. Conflict of Interest. Franchisee covenants that for the duration of this Agreement: (a) neither it nor any Equity Owner shall be employed by or have any direct or indirect financial or ownership interest in any other business providing services of the type described in this Agreement or in the Manual unless such other business is operated pursuant to a franchise granted by Franchisor or its Affiliates; and (b) it will require its resident manager and all employees to execute Franchisor's standard Non-Competition and Non-Disclosure Agreement, signed copies of which will be forwarded by Franchisee to Franchisor within one (1) week after execution or upon the date of employment, whichever is sooner.
- 8.8. Inspections.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, franchisees must maintain the absolute confidentiality of proprietary information both during and after the term of the agreement. Proprietary information includes all data and materials related to the development, operation, marketing, and licensing of the Beehive Homes system, including the Standards and the Manual. Franchisees acknowledge they do not acquire any right to the proprietary information other than to use it for their Beehive Homes location.
Beehive Homes franchisees agree not to use proprietary information in any business or for any purpose other than operating their Beehive Homes location under the Beehive Homes system. They must also prevent unauthorized copies or disclosure of proprietary information. This includes implementing procedures to restrict 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.
If a franchisee fails to comply with the terms of the agreement related to the use of names and marks, or engages in any unauthorized or improper use of the Beehive Homes system or its names and marks, this will cause irreparable damage to Beehive Homes and is considered a material breach of the agreement. In such cases, Beehive Homes is entitled to seek both temporary and permanent injunctive relief from a court of competent jurisdiction, in addition to any other legal remedies available. The franchisee will be responsible for covering all costs and expenses, including reasonable attorneys' fees, expert fees, and other litigation expenses incurred by Beehive Homes in connection with the franchisee's non-compliance.