What is a Beehive Homes franchisee required to do regarding procedures to protect 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, franchisees are responsible for maintaining the confidentiality of the Standards, the Manual, and all other Proprietary Information related to the Beehive Homes system. This information encompasses all materials concerning the development, operation, marketing, and licensing of the Beehive Homes system, regardless of who developed it. Franchisees do not acquire any rights or interests in the Proprietary Information beyond the right to use it for operating their Beehive Homes franchise.
Beehive Homes franchisees must not use the Proprietary Information in any business or for any purpose other than operating their Beehive Homes franchise. They are obligated to maintain the absolute confidentiality of this information both during and after the term of the Franchise Agreement. This includes refraining from making unauthorized copies of any Proprietary Information.
To prevent unauthorized use or disclosure, Beehive Homes franchisees must adopt and implement procedures that Beehive Homes may periodically establish. These procedures include placing restrictions on disclosing Proprietary Information to employees and using non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to the Proprietary Information. This ensures that all individuals with access to sensitive information are legally bound to protect it.