What is a Beehive Homes franchisee's obligation regarding the confidentiality of the Standards, the Manual, and other 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 have strict obligations regarding the confidentiality of proprietary information. Franchisees must treat the Standards, the Manual, and all other Proprietary Information as confidential. Proprietary Information includes all data and materials related to the development, operation, marketing, and licensing of the Beehive Homes system, whether created by the franchisor, franchisee, or another party.
Beehive Homes franchisees acknowledge that they only have the right to use the Proprietary Information to develop and operate their Beehive Homes location under the terms of the Franchise Agreement. They cannot use this information for any other business or purpose outside of the Beehive Homes system. Franchisees are responsible for maintaining the absolute confidentiality of the Proprietary Information both during the term of the agreement and after it ends. This extends to preventing unauthorized use or disclosure of the information.
To protect this information, Beehive Homes franchisees must not make unauthorized copies of any Proprietary Information. They must also implement procedures that Beehive Homes may periodically establish to prevent unauthorized use or disclosure. This includes placing restrictions on disclosing 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. These measures are crucial for maintaining the integrity and competitive advantage of the Beehive Homes system.