factual

What is the extent of the Beehive Homes franchisee's obligation to protect Trade Secrets?

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

sor deem appropriate.

  • (f) Confidential Treatment. Franchisee acknowledges that the Trade Secrets are proprietary and confidential and agrees that it shall protect, preserve and not disclose the Trade Secrets to anyother person, including employees, agents, successors or assigns, except as may be specifically allowed under this Agreement.
  • (g) Modification of Names and Marks. Franchisee acknowledges and agrees that if at any time it becomes advisable in the sole discretion of the Franchisor to modify or discontinue any use of the Names and Marks and/or use one or more additions to or substitutes for the Names and Marks, the Franchisee shall do so and the Franchisor's sole obligation in such event will be that Franchisor reimburse the Franchisee for actual costs in changing signs and replacing printed matter to comply with any change.

6.3. Ownership and Use of Goodwill.

  • (a) Ownership of Goodwill. Franchisee acknowledges and agrees that any and all goodwill associated with the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials, including any goodwill that might be deemed to have arisen through Franchisee's activities, shall inure directly and exclusively to the benefit of, and be owned solely by, Franchisor, except as otherwise provided herein or by applicable law.

  • (b) Preservation of Goodwill. Franchisee acknowledges and agrees that valuable goodwill is attached to the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials and that it will use the same solely in the manner prescribed by Franchisor, and will operate the Home and provide the services under the Names and Marks, Trade Secrets and Copyrighted Materials in strict accordance with the System, terms and conditions of this Agreement, the Manual and other operational Standards established by Franchisor from time to time. Franchisee covenants to protect and preserve the goodwill of the Names and Marks.

  • 6.4. Web Sites. For purposes of this Section, "Site(s)" means domain names, the World Wide Web, the Internet, computer network/distribution systems, or any other electronic communications sites or means.

    • (a) Franchisee may not register, own, or maintain any Sites that relate to the Home or that include any of the Names and Marks. The only domain names, Sites, or Site contractors that Franchisee may use relating to the Home or this Agreement are those Franchisor assigns or otherwise approves in writing. Franchisee acknowledges that it may not, without a legal license or other legal right, post on its Sites any material in which any third party has any direct or indirect ownership interest. Franchisee must incorporate on its Sites any information Franchisor requires in the manner Franchisor deems necessary to protect its Names and Marks.
    • (b) Any use of the Marks on anySite must conform to Franchisor's requirements, including the identity and graphics Standards for all Homes.

Source: Item 23 — RECEIPTS (FDD pages 34–123)

What This Means (2025 FDD)

According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees have a significant obligation to protect the company's trade secrets. Beehive Homes grants franchisees a nonexclusive right to use its Trade Secrets, but only in connection with the operation of their franchised location. Franchisees acknowledge that the Trade Secrets are proprietary and confidential.

The franchisee must protect, preserve, and not disclose the Trade Secrets to any other person, including employees, agents, successors, or assigns, unless specifically allowed in the Franchise Agreement. Upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease using the Trade Secrets. They must also return to Beehive Homes or destroy, at Beehive Homes' election, all documents, instructions, displays, and advertising items relating to the Trade Secrets.

Beehive Homes retains ownership of any modifications or alterations to the System, regardless of who makes them. This reinforces that franchisees can only use the Trade Secrets as explicitly allowed and that Beehive Homes maintains control over its proprietary information. Franchisees also agree that their license to use the Trade Secrets is nonexclusive, allowing Beehive Homes to operate or license others to operate under the same Trade Secrets.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.