Is a Beehive Homes franchisee required to protect the Trade Secrets?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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3.2. Grant of Licenses. Subject to the terms and conditions contained in this Agreement, Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, the nonexclusive right and sub-license to use (but only in connection with the Home and the System) the Names and Marks, Trade Secrets and Copyrighted Materials (as such may presently exist or hereafter be modified or acquired by Franchisor and be licensed for use to the Franchisee) but only to the extent Franchisor has rights or may acquire rights to the same. Franchisor agrees to impart and disclose to Franchisee the Trade Secrets prior to opening of the Home for business.
- 3.3. Reserved Rights. Notwithstanding the foregoing Sections 3.1 and 3.2:
- (a) This Agreement does not limit the Franchisor's right, or the right of any of its Affiliates, to own, license or operate any other business whatsoever, whether or not under the Names and Marks;
- (b) Franchisormayadd, alter, delete or otherwise modifyelements of the System; use or license to others all or part of the System; and use any portion of the System and Names and Marks in other businesses; and
(c) Franchisee acknowledges and agrees that he has no rights to, and will not make any claims or demands for, damages or other relief arising from or related to any of the foregoing activities, and that such activities will not give rise to any liability on Franchisor's part, including liability for claims for unfair competition, breach of contract, breach of any applicable implied covenant of good faith and fair dealing, or divided loyalty.
3.4. Franchisee Name. Franchisee shall operate the Home under the trade name "BEE HIVE HOMES of ____________________" (the "Trade Name") and shall use no other name in connection with any operations conducted by Franchisee without the prior written approval of Franchisor. Franchisor may change the Trade Name or the way in which it is depicted, at its sole option.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are required to protect the Trade Secrets. Beehive Homes grants franchisees a nonexclusive right to use its Trade Secrets, but only in connection with the operation of the franchised Home. The franchisor will disclose these trade secrets to the franchisee before the Home opens for business.
The FDD states that franchisees acknowledge the Trade Secrets are proprietary and confidential. Franchisees must protect, preserve, and not disclose the Trade Secrets to any other person, including employees, agents, successors, or assigns, unless specifically allowed in the Franchise Agreement.
Additionally, the franchisee acknowledges that valuable goodwill is attached to the Trade Secrets and agrees to operate the Home in strict accordance with the System, terms and conditions of the Franchise Agreement, the Manual, and other operational Standards established by Beehive Homes. Upon termination or expiration of the Franchise Agreement, the franchisee must cease using the Trade Secrets and return or destroy all related documents and materials.