Can a Beehive Homes franchisee use trademarks developed for the Home and System after the agreement terminates?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee cannot use trademarks, service marks, trade names, and copyrights developed for use in connection with the Home and System after the termination or expiration of the Franchise Agreement. These trademarks, along with ancillary signs, symbols, slogans, phrases, emblems, designs, and other indicia, are the sole and exclusive property of Beehive Homes. The franchisee's right to use them is limited to the term of the agreement and only as provided within the agreement.
Upon termination or expiration of the agreement, the franchisee must immediately stop using the Names and Marks, Trade Secrets, and Copyrighted Materials. Furthermore, the franchisee is required to either return to Beehive Homes or destroy, at Beehive Homes's discretion, all documents, instructions, displays, and advertising items related to these proprietary items. This includes all materials associated with the Names and Marks, Trade Secrets, and Copyrighted Materials.
This provision ensures that Beehive Homes maintains control over its brand identity and proprietary information. It prevents former franchisees from leveraging the brand's goodwill after the franchise relationship ends. This is a standard practice in franchising to protect the integrity and uniformity of the brand across all franchise locations. Prospective franchisees should understand that the value of the franchise is tied to the use of these trademarks and systems, but that this right is contingent upon maintaining an active franchise agreement.