Does Beehive Homes grant a right, franchise, and sub-license to the franchisee?

• E. Franchisee is desirous of acquiring the right, franchise and sub-license to construct or acquire a Home conforming to the Standards (as defined below) and to operate the Home using the System under the Names and Marks at the Location (as defined in Section 3.1). Franchisor is ready and willing to grant such a right, franchise and sub-license to Franchisee upon the terms and subject to the conditions hereinafter set forth.

AGREEMENT

NOW, THEREFORE, in consideration of the terms, conditions and covenants contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, it is understood and agreed by and among the parties hereto as follows:

• 3.2. Grant of Licenses. Subject to the terms and conditions contained in this Agreement, Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, the nonexclusive right and sub-license to use (but only in connection with the Home and the System) the Names and Marks, Trade Secrets and Copyrighted Materials (as such may presently exist or hereafter be modified or acquired by Franchisor and be licensed for use to the Franchisee) but only to the extent Franchisor has rights or may acquire rights to the same. Franchisor agrees to impart and disclose to Franchisee the Trade Secrets prior to opening of the Home for business.
  • 3.3. Reserved Rights. Notwithstanding the foregoing Sections 3.1 and 3.2:
  • (a) This Agreement does not limit the Franchisor's right, or the right of any of its Affiliates, to own, license or operate any other business whatsoever, whether or not under the Names and Marks;
  • (b) Franchisormayadd, alter, delete or otherwise modifyelements of the System; use or license to others all or part of the System; and use any portion of the System and Names and Marks in other businesses; and
• (c) Franchisee acknowledges and agrees that he has no rights to, and will not make any claims or demands for, damages or other relief arising from or related to any of the foregoing activities, and that such activities will not give rise to any liability on Franchisor's part, including liability for claims for unfair competition, breach of contract, breach of any applicable implied covenant of good faith and fair dealing, or divided loyalty.

Source: Item 23 — RECEIPTS (FDD pages 34–123)