Does Beehive Homes require me to exercise a specific level of diligence in maintaining the confidentiality of its information?
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.
YOU are also obligated to require each employee of the Home to execute OUR standard Non-Competition and Non-Disclosure Agreement before participating in any training or performing any work at or otherwise having access to the Home. A copy of the agreement shall be delivered to US within one week of its execution or on the first day of employment, whichever is sooner.
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 required to exercise a high degree of diligence in maintaining the confidentiality of the franchisor's proprietary information, both during and after the term of the Franchise Agreement. The Franchise Agreement states that the franchisee's knowledge of the Beehive Homes system is derived from information disclosed by the franchisor and that this information is proprietary, confidential, and a trade secret.
Beehive Homes requires franchisees to adhere strictly to all security procedures prescribed by the franchisor for maintaining the secrecy of the information. Franchisees may only disclose the information to their employees to the extent necessary for providing services and operating the Home in accordance with the Franchise Agreement. Franchisees are prohibited from using any of the information in any other business or in any manner not specifically authorized or approved in writing by Beehive Homes.
Furthermore, Beehive Homes obligates franchisees to require each employee to execute a standard Non-Competition and Non-Disclosure Agreement before they participate in any training or perform any work at the Home. A copy of this agreement must be delivered to Beehive Homes within one week of its execution or on the first day of employment, whichever is sooner. This demonstrates the importance Beehive Homes places on protecting its proprietary information and ensuring that both franchisees and their employees are bound by confidentiality agreements.