What are some examples of 'Proprietary Information' beyond the Standards and the Manual for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, franchisees must treat the Standards, the Manual, and all other Proprietary Information as confidential. Proprietary Information encompasses all data and materials related to the development, operation, marketing, and licensing of the Beehive Homes system. This includes information developed by Beehive Homes, the franchisee, or any other party.
Beyond the Standards and Manual, the definition of Proprietary Information is broad, covering all aspects of the Beehive Homes system. This means that information related to the design, construction, renovation, appearance, equipping, furnishing, supplying, opening, operating, maintaining, marketing, services, service levels, quality, and quality assurance of the Homes, as well as advertising and accounting methods, are considered proprietary. The franchisee's agreement specifies that they do not acquire any rights to this information beyond using it to operate their Beehive Homes franchise.
The franchisee is obligated to maintain the confidentiality of Proprietary Information both during and after the term of the franchise agreement. They are prohibited from using this information in any business or for any purpose other than operating their Beehive Homes franchise. Additionally, franchisees must prevent unauthorized copies or disclosure of Proprietary Information, including implementing procedures to restrict disclosure to employees and using non-disclosure and non-competition agreements with employees, agents, and independent contractors who have access to the information.
In practical terms, this means a Beehive Homes franchisee must be extremely careful about how they handle any information related to the Beehive Homes system. They cannot share operational details, marketing strategies, or any other non-public information with anyone outside of their franchise without explicit permission from Beehive Homes. This also extends to ensuring that employees and contractors are bound by confidentiality agreements to protect the franchisor's Proprietary Information.