Does the Beehive Homes Franchise Agreement define what constitutes 'proprietary formulations, technology, know-how'?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement provides that YOU acknowledge that, YOUR entire knowledge of Bee Hive Homes system, services, all proprietary formulations, technology, know-how and the operation of a Home is derived from information disclosed to YOU by US pursuant to the Franchise Agreement and that the information is proprietary and confidential and a trade secret of OURS.
The Franchise Agreement also provides that YOU will: (a) fully and strictly adhere to all security procedures prescribed by US in OUR sole discretion for maintaining the secrecy of the information; (b) disclose the information to YOUR employees only to the extent necessary to provide the services and for the operation of the Home in accordance with the Franchise Agreement; (c) not use any of the information in any other business or in any manner not specifically authorized or approved in writing by US; and (d) exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all the information during and after the term of the Franchise Agreement.
YOU are also obligated to require each employee of the Home to execute OUR standard Non-Competition and Non-Disclosure Agreement before participating in any training or performing any work at or otherwise having access to the Home. A copy of the agreement shall be delivered to US within one week of its execution or on the first day of employment, whichever is sooner.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 23–24)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the Franchise Agreement does not explicitly define what constitutes 'proprietary formulations, technology, know-how'. However, it states that a franchisee's entire knowledge of the Beehive Homes system, services, proprietary formulations, technology, know-how, and the operation of a Home is derived from information disclosed by Beehive Homes and that this information is proprietary, confidential, and a trade secret.
This means that while there isn't a specific list or definition, Beehive Homes considers all the information they provide to franchisees about their system as proprietary. This includes the methods, techniques, and knowledge related to operating a Beehive Homes facility. Franchisees are required to acknowledge that this information is confidential and a trade secret.
As a franchisee, you are obligated to adhere to security procedures to maintain the secrecy of this information, disclose it only to employees who need it, and not use it in any other business. You must also ensure your employees sign a Non-Competition and Non-Disclosure Agreement. This underscores the importance Beehive Homes places on protecting its operational methods and knowledge base.
Prospective franchisees should seek clarification from Beehive Homes regarding the specific types of information considered proprietary and the measures required to protect it. Understanding the scope of these proprietary assets is crucial for complying with the Franchise Agreement and avoiding potential breaches.