How is a Beehive Homes franchisee permitted to use 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, a franchisee's right to use the Proprietary Information is limited to the development and operation of their Beehive Homes location under the terms of the franchise agreement. The Proprietary Information includes all materials concerning the development, operation, marketing, and licensing of the Beehive Homes system, including the Standards and the Manual.
Beehive Homes franchisees do not acquire any ownership or interest in the Proprietary Information itself, only the right to utilize it within the scope of their franchise. They are explicitly prohibited from using the Proprietary Information in any other business or for any purpose outside of operating their Beehive Homes franchise. Franchisees must maintain the confidentiality of the Proprietary Information both during and after the term of the franchise agreement.
To protect the Proprietary Information, Beehive Homes franchisees cannot make unauthorized copies and must implement procedures to prevent unauthorized use or disclosure. This includes restricting disclosure to employees and using non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to the information. These measures ensure that the Beehive Homes system and its associated knowledge remain exclusive to authorized franchisees and the franchisor.