What is the geographic shape of the protected territory granted to a Beehive Homes franchisee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
al. WE will not grant another franchise using the Bee Hive Homes mark or any other mark or operate a company owned Home using the Bee Hive Homes mark or any other mark within a contiguous geographical area the perimeter of which contains YOUR location and which is of sufficient size to include a population of at least 30,000 persons, without YOUR prior written consent. This area need not be circular in shape with a fixed radius, but rather will be created consistent with the geographic and demographic characteristics surrounding YOUR location.
The Franchise Agreement gives YOU the right to construct and operate a Home at the location. You will not receive an exclusive territory. You may face competition from other franchisees. Residents of YOUR Home may come from within or without the area encompassing YOUR Home and persons from the area encompassing YOUR Home may become residents of Homes of other franchisees.
There are no restrictions limiting YOU from soliciting residents for YOUR Home from outside the area encompassing YOUR location, using any channels of distribution, such as the Internet, telemarketing or other direct marketing. Provided, however, that any advertising content is first approved by the Franchisor. WE do not own or operate any Homes and thus we do not solicit within or without the area encompassing YOUR Home. Neither WE nor our affiliates operates, franchises, or has plans to operate or franchise a business under a different trademark and that business sells or will sell goods or services similar to those that YOU will offer.
YOUR Franchise Agreement does not give YOU the right to acquire or establish any additional franchises. The relocation of YOUR franchise is subject to the same terms and conditions as was the selection of YOUR initial location. There are no conditions, other than compliance with the terms and conditions of the Franchise Agreement, to maintaining YOUR location.
ITEM 13. TRADEMARKS
| Marks Used by Franchisor | USPTO Serial Number | |---|---| | BEE HIVE HOMES | 86278828 | Bee Hive Homes of America, Inc.
Source: Item 12 — TERRITORY (FDD page 22)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the protected territory granted to a franchisee is not required to be circular. Instead, the territory's shape will be determined by the geographic and demographic characteristics surrounding the franchisee's location. The protected area will be a contiguous geographical area that includes the franchisee's location and contains a population of at least 30,000 people. Beehive Homes retains the right to modify the territory from time to time. The franchisee acknowledges that each territory may differ in size, population, and shape. The determination of these factors is established by Beehive Homes. The franchisee also waives any claims against Beehive Homes regarding the size, population, or other factors differentiating their location from other franchisees.
While Beehive Homes grants a protected territory, it is not an exclusive territory. Franchisees may face competition from other franchisees. Residents of a franchisee's home may come from inside or outside the designated area, and people from the franchisee's area may become residents of other franchisees' homes. However, franchisees are not restricted from soliciting residents outside their designated area through various channels like the Internet or telemarketing, provided that the advertising content is approved by Beehive Homes.
This territorial arrangement means that while Beehive Homes provides a degree of protection, franchisees need to be prepared to compete with other franchisees and potentially draw residents from a wider area. The non-fixed shape of the territory allows Beehive Homes to adapt the protected area to local conditions, but it also introduces some uncertainty for the franchisee. Prospective franchisees should carefully consider the demographic and geographic characteristics of their proposed location and how these factors might influence the shape and size of their protected territory.