Is a Beehive Homes franchisee required to assign rights to the franchisor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
e from its Affiliate. Franchisee further acknowledges and agrees that all trademarks, service marks, trade names, including the Trade Name, and copyrights, together with all ancillary signs, symbols, slogans, phrases, emblems, designs and other indicia developed by or for Franchisee for use in connection with the Home and the System are the sole and exclusive property of Franchisor and may be used by Franchisee only during the Term of this Agreement and only as provided in this Agreement. 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.
- (a) Noninterference. The Franchisee expressly covenants 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.
- (b) Additional Assurances.TheFranchisee covenants and agrees that both during the Term of this Agreement and after the termination or expiration hereof Franchisee shall execute any and all additional papers, documents, and assurances in connection with the establishment or maintenance of Franchisor's ownership of the Names and Marks, Trade Secrets and Copyrighted Materials and agrees to fully cooperate with the Franchisor, its designees or any other franchisee or licensee of the Franchisor in securing all necessary and required consents of any state agency or legal authority to use the Names and Marks.
(c) Infringement Disputes.
- (i) Franchisee will immediately notify Franchisor of any infringement or dilution of or challenge to its use of any of the Names and Marks and will not, absent a court order or Franchisor's prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim. Franchisor will take the action it deems appropriate with respect to such challenges and claims and has the sole right to handle disputes concerning use of all or any part of the Names and Marks or the System. Franchisee will fully cooperate with Franchisor and its Affiliates in these matters.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, franchisees must acknowledge that all trademarks, service marks, trade names (including the Trade Name), and copyrights, along with any related signs, symbols, slogans, phrases, emblems, designs, and other identifiers developed by or for the franchisee for use in connection with the Home and the System, are the sole and exclusive property of Beehive Homes. The franchisee can only use these during the term of the agreement and as specified in the agreement. Upon termination or expiration of the agreement, the franchisee must immediately stop using the Names and Marks, Trade Secrets, and Copyrighted Materials. They must also return to Beehive Homes or destroy, at Beehive Homes's discretion, all documents, instructions, displays, and advertising items related to these proprietary items.
Beehive Homes also maintains ownership of any modifications or alterations to the design of the Home or to the System, regardless of who made them or whether they are incorporated into the Home or System. Franchisees are granted a nonexclusive right to use such modifications and alterations only during the term of the Franchise Agreement. This section clarifies that Beehive Homes does not gain any ownership rights to the real property where the Home is located.
Furthermore, any goodwill associated with the Home, the System, the Names and Marks, Trade Secrets, and Copyrighted Materials, including goodwill that may arise from the franchisee's activities, belongs exclusively to Beehive Homes. The franchisee must use these assets as prescribed by Beehive Homes and operate the Home in strict accordance with the System, the terms of the Franchise Agreement, the Manual, and other operational Standards established by Beehive Homes to protect and preserve the goodwill of the Names and Marks.