What rights does a Beehive Homes franchisee have to use modifications and alterations to the design of the Home or System?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Y AND CONFIDENTIALITY
- 6.1. Ownership and Use of Modifications and Alterations to Home and System. Franchisee acknowledges and agrees that as among Franchisor and its Affiliates, and Franchisee and its Affiliates, all modifications and alterations to the design of the Home or to the System, whether or not incorporated into the Home or the System and whether made by Franchisor, its Affiliates or Franchisee and its Affiliates, are validly and exclusively owned by Franchisor, and Franchisee has only the nonexclusive right to use such modifications and alterations during the Term of this Agreement. This Section confers no ownership rights in the real propertycomprising the Home upon Franchisor.
- 6.2. Ownership and Use of Names and Marks, Trade Secrets and Copyrighted Materials. Franchisee acknowledges and agrees that the Names and Marks, Trade Secrets and Copyrighted Materials are validly owned by Franchisor and that Franchisee has only the nonexclusive right to use such Names and Marks, Trade Secrets, and Copyrighted Materials as provided in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, any modifications or alterations to the design of the Home or the System, whether made by Beehive Homes or the franchisee, are owned exclusively by Beehive Homes. The franchisee only has a nonexclusive right to use these modifications and alterations during the term of the Franchise Agreement. This means that while a franchisee can use approved modifications, they do not own them and cannot claim ownership over any changes made to the Beehive Homes design or operational system.
This arrangement ensures that Beehive Homes maintains control over its brand standards and system-wide consistency. It allows Beehive Homes to incorporate successful modifications across the franchise network, while preventing franchisees from independently altering the brand's core elements. This is a fairly standard practice in franchising, where maintaining uniformity is crucial for brand recognition and customer experience.
Furthermore, the FDD states that any variation, alteration, or modification of the architectural and design drawings provided by Beehive Homes requires prior written approval from Beehive Homes. While Beehive Homes provides general architectural and design drawings as guidelines, franchisees are responsible for engaging their own architects and contractors to prepare final plans. These final plans must be approved by Beehive Homes to ensure compliance with trade dress guidelines before submission for building permits. This process ensures that while franchisees manage the construction, Beehive Homes retains control over the design and appearance of each location.
In practical terms, a prospective Beehive Homes franchisee should understand that while they can propose modifications to the Home design or System, Beehive Homes has the final say. Any changes must be approved in writing, and the franchisee will not own the rights to those changes. This is important to consider for franchisees who may have specific design preferences or ideas for improving the System, as they will need to work within the framework established by Beehive Homes.