For Beehive Homes, does the non-competition agreement extend beyond the term of the franchise 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)
According to Beehive Homes' 2025 Franchise Disclosure Document, the non-competition agreement for franchisees extends only for the duration of the franchise agreement. Specifically, the franchisee agrees not to have a financial interest in any similar business unless it's another Beehive Homes franchise.
This restriction applies to both the franchisee and any equity owners. Additionally, Beehive Homes requires the resident manager and all employees to sign a standard Non-Competition and Non-Disclosure Agreement. Franchisees must forward signed copies of these agreements to Beehive Homes within one week of execution or upon the date of employment, whichever is sooner.
This means that once the franchise agreement expires or is terminated, the franchisee is no longer bound by this specific non-compete clause. However, it is important to carefully review the entire franchise agreement and related documents to fully understand all post-term obligations and restrictions, as other clauses might impose limitations even after the agreement ends. Prospective franchisees should seek legal counsel to fully understand the implications of these clauses.