Does the Beehive Homes franchisee have exclusive rights to use modifications and alterations to the Home or System?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.1. Ownership and Use of Modifications and Alterations to Home and System. Franchisee acknowledges and agrees that as among Franchisor and its Affiliates, and Franchisee and its Affiliates, all modifications and alterations to the design of the Home or to the System, whether or not incorporated into the Home or the System and whether made by Franchisor, its Affiliates or Franchisee and its Affiliates, are validly and exclusively owned by Franchisor, and Franchisee has only the nonexclusive right to use such modifications and alterations during the Term of this Agreement. This Section confers no ownership rights in the real propertycomprising the Home upon Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees do not have exclusive rights to modifications or alterations made to the Home or System. All modifications and alterations to the design of the Home or to the System, whether made by Beehive Homes or the franchisee, are exclusively owned by Beehive Homes. The franchisee only has a nonexclusive right to use such modifications and alterations during the term of the Franchise Agreement.
This means that while a franchisee may contribute to or suggest modifications to the Beehive Homes system or the design of their specific location, the ownership of those changes ultimately resides with Beehive Homes. The franchisee's right to use these modifications is limited to the duration of their agreement. This is a fairly standard practice in franchising, as it allows the franchisor to maintain consistency and control over the brand and system-wide.
This arrangement allows Beehive Homes to incorporate successful modifications across the entire franchise system, benefiting all franchisees. However, it also means that a franchisee cannot claim ownership of any improvements or modifications they develop and cannot prevent Beehive Homes from using those modifications in other locations or with other franchisees. Franchisees should be aware that any innovations they bring to their Beehive Homes location become the property of the franchisor and can be implemented across the franchise system.