Is the nonexclusive license granted by Beehive Homes in paragraph 3.2 of the Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
The obligations that WE will perform before the opening of YOUR Bee Hive Home are:
(1) to grant a nonexclusive license to YOU to use the trade names, trademarks and service marks of Bee Hive Homes. (paragraph 3.2 of the Franchise Agreement)
(2) to provide YOU with general architectural and design drawings for a Home to submit to YOUR architect for rendering, and to provide YOU with an itemization of all equipment and supplies to be used in the operation of the Home.
It will be YOUR responsibility to engage, at YOUR expense, an architect and an engineer who will prepare the final specifications and drawings, and provided necessary stamps and certifications to be submitted for approval by local government agencies and by the franchisor, all of whom must approve prior to the start of construction.
Upon YOUR request, WE will provide assistance and guidance in negotiating construction, equipment and supply contracts for the construction, furnishing and equipping of the Home.
However, YOU are solely responsible for the terms of all contracts and exercising adequate supervision.
WE do not assist in construction, remodeling or decorating of the site. (paragraph 7.2 of the Franchise Agreement)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, one of the obligations that Beehive Homes will perform before the opening of your Beehive Homes location is to grant a nonexclusive license to use their trade names, trademarks, and service marks. This grant of license is specifically mentioned in paragraph 3.2 of the Franchise Agreement. This means that as a franchisee, you are authorized to use the Beehive Homes brand and associated intellectual property to operate your franchise. However, the license is nonexclusive, indicating that Beehive Homes retains the right to grant similar licenses to other franchisees, and operate under the same brand themselves.
This nonexclusive license is a standard practice in franchising, allowing the franchisor to expand their brand presence without being restricted to a single operator in a given area. For a prospective Beehive Homes franchisee, this means that while you have the right to use the Beehive Homes brand, you may face competition from other Beehive Homes franchisees or from the franchisor itself in the same general market. It is important to understand the potential for competition and to assess the market conditions in your desired location.
In addition to the nonexclusive license, Beehive Homes also provides general architectural and design drawings for a Home to submit to your architect for rendering, and an itemization of all equipment and supplies to be used in the operation of the Home. However, it is your responsibility to engage an architect and engineer to prepare the final specifications and drawings, and to obtain the necessary approvals from local government agencies and the franchisor. Beehive Homes does not assist in the construction, remodeling, or decorating of the site.