What is the Beehive Homes franchisee prohibited from doing with the Names and Marks after the agreement is terminated?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby agrees that if this Agreement is terminated for any reason, Franchisee shall immediately discontinue use of the Trade Name, as well as the Names and Marks.
Franchisee acknowledges and agrees that both during the Term of this Agreement and after the termination or expiration hereof Franchisee shall not: (a) directly or indirectly contest or aid in contesting the validity of Franchisor's and its Affiliates' ownership of the Names and Marks, Trade Secrets or Copyrighted Materials; nor (b) in any manner interfere with or attempt to prohibit the use of the Names and Marks, Trade Secrets or Copyrighted Materials by any other existing or future franchisee or other licensee or sub-licensee of the Franchisor in any area or location.
Immediately upon termination or expiration of this Agreement, the Franchisee shall cease and desist from using said Names and Marks, Trade Secrets and Copyrighted Materials and shall return to Franchisor or destroy, at the Franchisor's election, all documents, instructions, displays, and advertising items and the like relating to the Names and Marks, Trade Secrets and Copyrighted Materials.
- (e) To take all necessary steps to disassociate itself from Franchisor, including, but not limited to, the removal of signs, destruction of letterhead, disconnecting of all telephone numbers listed under any of the Names or Marks or under any confusingly similar name and, upon Franchisor's request, transferringallsuch numbers and listings to Franchisor or its designee;
- (f) To take such action as shall be necessary to amend or cancel any assumed name, business name or equivalent registration which contains any Names or Marks;
- (g) To cease all operations at the Location;
- (i) If Franchisee fails to promptly complete any of the foregoing steps, Franchisee hereby irrevocably appoints Franchisor as its attorney-in-fact to complete the foregoing steps for and on the behalf of the Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, after the franchise agreement is terminated, the franchisee must immediately stop using the Trade Name, Names, and Marks. The franchisee must also return or destroy all documents, instructions, displays, and advertising items related to the Names and Marks, Trade Secrets, and Copyrighted Materials, as per Beehive Homes's instructions.
Furthermore, the franchisee cannot contest the validity of Beehive Homes' ownership of the Names and Marks, Trade Secrets, or Copyrighted Materials, nor can they interfere with the use of these by other franchisees or licensees. The franchisee must also execute any additional documents required to maintain Beehive Homes' ownership of the Names and Marks and cooperate in securing necessary consents from state agencies or legal authorities for their use.
To ensure compliance, the franchisee must take steps to disassociate from Beehive Homes, including removing signs, destroying letterhead, and disconnecting telephone numbers listed under the Names or Marks. They must also amend or cancel any assumed name registrations containing the Names or Marks and cease all operations at the location. If the franchisee fails to complete these steps, Beehive Homes is irrevocably appointed as the franchisee's attorney-in-fact to complete them on their behalf.
These measures protect Beehive Homes' brand identity and prevent former franchisees from unfairly competing or causing confusion in the market after the agreement ends. Franchisees should understand these obligations and be prepared to fully comply with them upon termination of the agreement.