For Beehive Homes, what constitutes a 'business which is the same or substantially similar' under the non-competition agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a conflict of interest arises if a franchisee or any equity owner is employed by or has a financial interest in another business providing services of the type described in the Franchise Agreement or the Manual, unless that business is also a Beehive Homes franchise. This restriction is in place for the duration of the Franchise Agreement.
This means that as a Beehive Homes franchisee, you and any of your equity owners cannot be involved in a competing business that offers similar residential care, assisted living, rehabilitation, memory care, or hospice care services, unless it's another Beehive Homes franchise. This is a fairly standard non-compete clause in franchising, designed to protect the brand and prevent franchisees from using the franchisor's knowledge to benefit a competing business.
Furthermore, Beehive Homes requires its resident manager and all employees to sign a Non-Competition and Non-Disclosure Agreement. Franchisees must forward signed copies of these agreements to Beehive Homes within one week of execution or upon the date of employment, whichever is sooner. This ensures that not only the franchisee but also their staff are bound by non-competition and confidentiality obligations, further safeguarding Beehive Homes' business interests.