What is the Beehive Homes franchisee's obligation regarding the confidentiality of Proprietary Information after the term of the agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Beehive Homes Franchise Disclosure Document, franchisees must maintain the absolute confidentiality of the franchisor's Proprietary Information both during and after the term of the franchise agreement. Proprietary Information includes all information or materials concerning the development, operation, marketing, and licensing of the Beehive Homes system, including the Standards and the Manual, whether developed by the franchisor, franchisee, or another person.
This means that even after a franchisee's agreement expires or is terminated, they are still legally obligated to protect and not disclose any confidential information related to the Beehive Homes system. This obligation extends indefinitely beyond the term of the agreement.
Beehive Homes also requires franchisees to implement procedures to prevent unauthorized use or disclosure of 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. This highlights the importance Beehive Homes places on protecting its confidential information and trade secrets, and the measures franchisees must take to uphold this confidentiality.