What rights does a Beehive Homes franchisee acquire in the Proprietary Information?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will treat as confidential the Standards, the Manual and all other Proprietary Information.
Proprietary Information means all information or materials concerning development, operation, marketing and licensing of the System, including the Standards and the Manual, whether developed by Franchisor, Franchisee or another Person.
Franchisee acknowledges and agrees that it does not acquire any right or interest in the Proprietary Information other than the right to utilize the same in the development and operation of the Home under the terms of this Agreement.
Franchisee agrees that it will not use the Proprietary Information in any business or for any purpose other than in the development and operation of the Home under the System and will maintain the absolute confidentiality of the ProprietaryInformation during and after the Term.
Franchisee will not make unauthorized copies of any portion of the Proprietary Information; and will adopt and implement all procedures Franchisor may periodically establish in its business judgment to prevent unauthorized use or disclosure of the Proprietary Information, including restrictions on disclosure to employees and the use of non-disclosure and non-competition clauses in agreements with employees, agents and independent contractors who have access to the Proprietary Information.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee does not acquire ownership of the Proprietary Information but has a limited right to use it. Specifically, the franchisee only obtains the right to utilize the Proprietary Information in the development and operation of their Beehive Homes location under the terms of the franchise agreement. This means the franchisee can use the information to run their business but cannot claim ownership or any other interest in it. The Proprietary Information includes all information and materials concerning the development, operation, marketing, and licensing of the Beehive Homes system, including the Standards and the Manual.
The Beehive Homes franchisee is explicitly prohibited from using the Proprietary Information in any business or for any purpose other than operating their franchised location under the Beehive Homes system. They must maintain the absolute confidentiality of the Proprietary Information both during and after the term of the franchise agreement. This obligation extends to preventing unauthorized copies and implementing procedures to avoid unauthorized use or disclosure, including imposing restrictions on employees and using non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to the Proprietary Information.
This arrangement is typical in franchising, where the franchisor retains ownership and control over its intellectual property and operational methods. The franchisee's rights are limited to using these assets within the scope of the franchise agreement. Upon termination or expiration of the agreement, the franchisee must cease using the Proprietary Information. This ensures that the Beehive Homes system and brand are protected and consistently applied across all franchise locations.