What is the Beehive Homes franchisee's obligation regarding the Trade Secrets?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
sor deem appropriate.
- (f) Confidential Treatment. Franchisee acknowledges that the Trade Secrets are proprietary and confidential and agrees that it shall protect, preserve and not disclose the Trade Secrets to anyother person, including employees, agents, successors or assigns, except as may be specifically allowed under this Agreement.
- (g) Modification of Names and Marks. Franchisee acknowledges and agrees that if at any time it becomes advisable in the sole discretion of the Franchisor to modify or discontinue any use of the Names and Marks and/or use one or more additions to or substitutes for the Names and Marks, the Franchisee shall do so and the Franchisor's sole obligation in such event will be that Franchisor reimburse the Franchisee for actual costs in changing signs and replacing printed matter to comply with any change.
6.3. Ownership and Use of Goodwill.
(a) Ownership of Goodwill. Franchisee acknowledges and agrees that any and all goodwill associated with the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials, including any goodwill that might be deemed to have arisen through Franchisee's activities, shall inure directly and exclusively to the benefit of, and be owned solely by, Franchisor, except as otherwise provided herein or by applicable law.
(b) Preservation of Goodwill. Franchisee acknowledges and agrees that valuable goodwill is attached to the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials and that it will use the same solely in the manner prescribed by Franchisor, and will operate the Home and provide the services under the Names and Marks, Trade Secrets and Copyrighted Materials in strict accordance with the System, terms and conditions of this Agreement, the Manual and other operational Standards established by Franchisor from time to time. Franchisee covenants to protect and preserve the goodwill of the Names and Marks.
6.4. Web Sites. For purposes of this Section, "Site(s)" means domain names, the World Wide Web, the Internet, computer network/distribution systems, or any other electronic communications sites or means.
- (a) Franchisee may not register, own, or maintain any Sites that relate to the Home or that include any of the Names and Marks.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, franchisees have specific obligations regarding the franchisor's trade secrets. Beehive Homes acknowledges that the Trade Secrets are proprietary and confidential. As such, the franchisee must protect, preserve, and not disclose the Trade Secrets to any other person, including employees, agents, successors, or assigns, unless specifically allowed under the Franchise Agreement. This obligation ensures the confidentiality and proprietary nature of Beehive Homes' operational methods and business strategies are maintained.
Upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease using the Trade Secrets. The franchisee is also required to return to Beehive Homes or destroy, at Beehive Homes' election, all documents, instructions, displays, and advertising items related to the Trade Secrets. This ensures that all confidential information and materials are either returned to the franchisor or destroyed to prevent any unauthorized use after the franchise relationship ends.
Beehive Homes grants the franchisee a nonexclusive right to use the Trade Secrets in connection with operating the Home. However, Beehive Homes retains the right to operate Homes and provide services under the Names and Marks and to grant other licenses to use the Names and Marks on any terms and conditions it deems appropriate. This nonexclusive arrangement means that Beehive Homes can use the same trade secrets and grant similar rights to others, which is a common practice in franchising to expand the brand's reach while maintaining control over its proprietary information.