What does the Beehive Homes franchise agreement define as 'Proprietary Information'?
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 Beehive Homes' 2025 Franchise Disclosure Document, Proprietary Information is defined as any data or materials related to the development, operation, marketing, and licensing of the Beehive Homes system. This includes the Standards and the Manual, irrespective of whether the information was developed by Beehive Homes, the franchisee, or another party.
Beehive Homes franchisees acknowledge that they are only granted the right to use this Proprietary Information for the development and operation of their Beehive Homes location under the terms of the franchise agreement. Franchisees do not acquire any other rights or interests in the Proprietary Information itself.
The franchise agreement stipulates that franchisees must maintain the absolute confidentiality of the Proprietary Information both during and after the term of the agreement. Franchisees are prohibited from using the Proprietary Information in any business or for any purpose other than operating their Beehive Homes franchise. Furthermore, franchisees are not allowed to make unauthorized copies of any part of the Proprietary Information.
To protect this information, Beehive Homes franchisees must implement procedures to prevent unauthorized use or disclosure. This includes placing restrictions on disclosing the information to employees and using non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to the Proprietary Information.