For Beehive Homes, what is the geographic scope of the non-competition agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.7. Conflict of Interest. Franchisee covenants that for the duration of this Agreement: (a) neither it nor any Equity Owner shall be employed by or have any direct or indirect financial or ownership interest in any other business providing services of the type described in this Agreement or in the Manual unless such other business is operated pursuant to a franchise granted by Franchisor or its Affiliates; and (b) it will require its resident manager and all employees to execute Franchisor's standard Non-Competition and Non-Disclosure Agreement, signed copies of which will be forwarded by Franchisee to Franchisor within one (1) week after execution or upon the date of employment, whichever is sooner.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
The 2025 Beehive Homes Franchise Disclosure Document mentions non-competition agreements in the context of required agreements for the resident manager and employees. Specifically, during the term of the Franchise Agreement, the franchisee and equity owners cannot have a financial interest in a similar business unless it's another Beehive Homes franchise.
According to the FDD, Beehive Homes requires franchisees to have their resident manager and all employees sign the standard Non-Competition and Non-Disclosure Agreement. Signed copies of these agreements must be sent to Beehive Homes within one week of execution or upon the date of employment, whichever comes first.
While the FDD excerpt confirms the existence of non-competition agreements for resident managers and employees, it does not specify the geographic scope or duration of these agreements. A prospective franchisee should review a full copy of the Non-Competition and Non-Disclosure Agreement to understand the specific restrictions and limitations, including the geographic area covered and the duration of the agreement, to fully understand their obligations.