Does Beehive Homes hold rights to a unique System for the operation of the Homes?

According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes has developed and holds the rights to a unique System for operating its residential care, assisted living, rehabilitation, memory care, and/or hospice care homes. This System includes standards for interior and exterior design, furnishings, and equipment, all established as original and unique by Beehive Homes. The franchise agreement grants franchisees a nonexclusive right and sub-license to use this System in connection with their franchised Home. However, Beehive Homes retains the right to modify elements of the System, license it to others, and use it in other businesses.

As a franchisee, you acknowledge that all modifications and alterations to the Home's design or the System, whether made by Beehive Homes or the franchisee, are exclusively owned by Beehive Homes. Your right to use these modifications is nonexclusive and limited to the term of the franchise agreement. This extends to the trade name, trademarks, service marks, and copyrights associated with Beehive Homes, which are acquired by license from Beehive Homes' affiliate. Upon termination of the agreement, you must cease using these names and marks and return or destroy related materials.

This agreement does not prevent Beehive Homes or its affiliates from owning, licensing, or operating any other business, even those using similar names and marks. Beehive Homes can also modify the System and use it in other ventures. As a franchisee, you agree not to make claims for damages related to these activities and acknowledge that they do not create any liability for Beehive Homes. You must operate your Home under the trade name "BEE HIVE HOMES of [Location]" and comply with the standards set forth in the Manual, ensuring consistent branding and operational practices.

Franchisees must maintain the confidentiality of the Standards, the Manual, and all other Proprietary Information related to the System's development, operation, marketing, and licensing. This information remains the property of Beehive Homes, and franchisees can only use it for operating their Home under the Beehive Homes System. Unauthorized copies or use of this information are prohibited, and franchisees must implement procedures to prevent unauthorized disclosure, including non-disclosure agreements with employees and contractors.