Does a Beehive Homes franchisee acquire any ownership right in the 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, franchisees do not acquire any ownership rights to the Proprietary Information. The FDD specifies that franchisees are only granted the right to utilize the Proprietary Information in the development and operation of their Beehive Homes location, under the terms outlined in the franchise agreement. This means a franchisee can use the information to run their business, but they don't own it. Proprietary Information includes all information or materials concerning the development, operation, marketing, and licensing of the Beehive Homes system, including the Standards and the Manual, whether developed by Beehive Homes, the franchisee, or another party.
Beehive Homes franchisees must maintain the absolute confidentiality of the Proprietary Information both during and after the term of the franchise agreement. They are prohibited from using this information in any business or for any purpose other than operating their Beehive Homes franchise under the Beehive Homes system. Additionally, franchisees cannot make unauthorized copies of any Proprietary Information and must adhere to procedures established by Beehive Homes to prevent unauthorized use or disclosure. This includes implementing restrictions on disclosure 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.
This is a fairly standard practice in franchising, as the franchisor needs to protect its intellectual property and maintain consistency across all franchise locations. Upon termination or expiration of the franchise agreement, the franchisee must cease using the Proprietary Information and return or destroy all related documents and materials at Beehive Homes's election. This ensures that the Proprietary Information remains exclusively under the control of Beehive Homes, protecting its competitive advantage and brand integrity.