Does the Beehive Homes Franchise Agreement state that the information disclosed to me is a trade secret?
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 stipulates that all knowledge a franchisee gains about the Beehive Homes system is considered proprietary, confidential, and a trade secret. This includes their services, formulations, technology, know-how, and operational methods.
As a franchisee, you are obligated to adhere strictly to Beehive Homes' security procedures to maintain the secrecy of this information. Disclosure to employees should be limited to what is necessary for providing services and operating the home, and the information cannot be used in any other business without written authorization. Franchisees must exercise diligence to maintain confidentiality both during and after the term of the Franchise Agreement.
Furthermore, Beehive Homes requires franchisees to have their employees sign a Non-Competition and Non-Disclosure Agreement before they participate in training or perform any work at the home. A copy of this agreement must be provided to Beehive Homes within one week of its execution or on the employee's first day of employment, whichever comes first. This ensures that all individuals with access to Beehive Homes' proprietary information are bound by confidentiality and non-competition terms.