Does the Beehive Homes Franchise Agreement require me to adhere to security procedures for maintaining the secrecy of information?
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 Beehive Homes' 2025 Franchise Disclosure Document, the Franchise Agreement mandates that franchisees acknowledge the proprietary and confidential nature of the information disclosed to them, including knowledge of the Beehive Homes system, services, proprietary formulations, technology, know-how, and the operation of a Home. This information is considered a trade secret of Beehive Homes.
As a franchisee, you are required to strictly adhere to all security procedures prescribed by Beehive Homes for maintaining the secrecy of this information. You may only disclose the information to your employees to the extent necessary for them to provide services and operate the Home in accordance with the Franchise Agreement. Furthermore, you are prohibited from using any of this information in any other business or in any manner not specifically authorized or approved in writing by Beehive Homes.
The Franchise Agreement also requires you to exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all the information, both during and after the term of the Franchise Agreement. Additionally, you must ensure that each employee of the Home executes Beehive Homes' standard Non-Competition and Non-Disclosure Agreement before they participate in any training or perform any work at the Home, providing a copy of the agreement to Beehive Homes within one week of its execution or on the first day of employment, whichever is sooner. This ensures that both the franchisee and their employees are legally bound to protect Beehive Homes' confidential information.