Does the Beehive Homes non-compete agreement apply if the franchisee is an individual?
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)
According to the 2025 Beehive Homes Franchise Disclosure Document, the non-compete agreement applies to the franchisee and their employees. Specifically, for the duration of the agreement, the franchisee cannot be employed by or have any financial interest in a business providing similar services, unless it's another Beehive Homes franchise.
Beehive Homes also requires the franchisee to have their resident manager and all employees sign a standard Non-Competition and Non-Disclosure Agreement. The franchisee must then forward signed copies of these agreements to Beehive Homes within one week of execution or upon the date of employment, whichever comes first.
This obligation ensures that individuals working within the Beehive Homes franchise system are committed to avoiding conflicts of interest and protecting the franchisor's confidential information. A prospective franchisee should carefully review the standard Non-Competition and Non-Disclosure Agreement to understand its specific terms and limitations.