For Beehive Homes, what is the duration of the non-compete agreement after the franchisee's cessation of operations at the location?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1. Noncompetition. During the Term of this Agreement and for a period of three (3) years after the Transfer, termination or expiration of this Agreement, or if later, the Franchisee's cessation of operations at the Location, the Franchisee shall not, and if Franchisee is a corporation or other legal entity, its officers, directors, shareholders, partners, managers, members and Equity Owner(s) shall not, in any capacity, directly or indirectly, except with the written consent of Franchisor, engage in any business which is the same or substantially similar to the type of business covered by this Agreement in any location for which any of the Names and Marks is registered. The Franchisee will not employ or seek to employ any person who is at the same time employed by any business operated by Franchisor or any of its Affiliates, franchisees or other licensees and will not, directly or indirectly, induce any such person to leave his or her employment unless the Franchisee has obtained the prior written approval of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the non-compete agreement lasts for three years after the franchisee's cessation of operations at the location. This restriction applies if the cessation of operations occurs later than the transfer, termination, or expiration of the Franchise Agreement.
During this three-year period, the franchisee, and if the franchisee is a corporation or other legal entity, its officers, directors, shareholders, partners, managers, members, and equity owners, are prohibited from engaging in any business that is the same or substantially similar to the type of business covered by the Franchise Agreement. This restriction applies to any location where any of the Beehive Homes names and marks are registered, unless the franchisee obtains written consent from Beehive Homes.
Additionally, the franchisee is prohibited from employing or soliciting employees of Beehive Homes or its affiliates, franchisees, or licensees without prior written approval from Beehive Homes. This non-compete clause is designed to protect Beehive Homes' market position and proprietary information by preventing former franchisees from directly competing and leveraging the brand's established reputation and resources in a similar business venture within a defined geographical area.