Where does the non-competition covenant apply for Beehive Homes franchisees?
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 covenant applies to the franchisee and their equity owners during the term of the franchise agreement. Specifically, neither the franchisee nor any equity owner can be employed by or have any financial interest in a business providing similar services, unless that business is another Beehive Homes franchise.
Furthermore, Beehive Homes requires franchisees 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 ensures that not only the franchisee but also their key staff are bound by non-competition and non-disclosure obligations.
This is a fairly standard practice in franchising, designed to protect the franchisor's business model, trade secrets, and customer relationships. Prospective Beehive Homes franchisees should carefully review the Non-Competition and Non-Disclosure Agreement to understand its specific terms and limitations, including the duration and geographic scope of the restrictions, to ensure they are comfortable with these obligations.