Does my obligation to maintain confidentiality of Beehive Homes information continue after the termination of the Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement also provides that YOU will: (a) fully and strictly adhere to all security procedures prescribed by US in OUR sole discretion for maintaining the secrecy of the information; (b) disclose the information to YOUR employees only to the extent necessary to provide the services and for the operation of the Home in accordance with the Franchise Agreement; (c) not use any of the information in any other business or in any manner not specifically authorized or approved in writing by US; and (d) exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all the information during and after the term of the Franchise Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 23–24)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are obligated to maintain the confidentiality of proprietary information both during and after the term of the Franchise Agreement. Beehive Homes considers the franchisee's knowledge of the Beehive Homes system, services, proprietary formulations, technology, know-how, and the operation of a Home to be derived from information disclosed by them, which is deemed proprietary, confidential, and a trade secret.
This means that even after a franchisee's agreement with Beehive Homes ends, they cannot use or disclose confidential information about the Beehive Homes system. Franchisees must adhere to security procedures, disclose information only to employees who need it, and avoid using the information in any other business.
Furthermore, franchisees are required to ensure that their employees also sign a Non-Competition and Non-Disclosure Agreement, reinforcing the commitment to maintain confidentiality. This obligation extends beyond the term of the Franchise Agreement, highlighting the importance Beehive Homes places on protecting its proprietary information and trade secrets.