What rights does Beehive Homes grant to franchisees under the franchise agreement?

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• 3.2. Grant of Licenses. Subject to the terms and conditions contained in this Agreement, Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, the nonexclusive right and sub-license to use (but only in connection with the Home and the System) the Names and Marks, Trade Secrets and Copyrighted Materials (as such may presently exist or hereafter be modified or acquired by Franchisor and be licensed for use to the Franchisee) but only to the extent Franchisor has rights or may acquire rights to the same. Franchisor agrees to impart and disclose to Franchisee the Trade Secrets prior to opening of the Home for business.

  • 3.3. Reserved Rights. Notwithstanding the foregoing Sections 3.1 and 3.2:
  • (a) This Agreement does not limit the Franchisor's right, or the right of any of its Affiliates, to own, license or operate any other business whatsoever, whether or not under the Names and Marks;
  • (b) Franchisormayadd, alter, delete or otherwise modifyelements of the System; use or license to others all or part of the System; and use any portion of the System and Names and Marks in other businesses; and

• (c) Franchisee acknowledges and agrees that he has no rights to, and will not make any claims or demands for, damages or other relief arising from or related to any of the foregoing activities, and that such activities will not give rise to any liability on Franchisor's part, including liability for claims for unfair competition, breach of contract, breach of any applicable implied covenant of good faith and fair dealing, or divided loyalty.

• 3.4. Franchisee Name. Franchisee shall operate the Home under the trade name "BEE HIVE HOMES of ____________________" (the "Trade Name") and shall use no other name in connection with any operations conducted by Franchisee without the prior written approval of Franchisor. Franchisor may change the Trade Name or the way in which it is depicted, at its sole option. Franchisee shall use the Trade Name and such other of the Names and Marks as Franchisee may be authorized to use exclusively for the purpose of operating the Home pursuant to the franchise granted by this Agreement.

Franchisee shall display the Franchisee's Trade Name for all purposes, and on all signs, stationary, business cards, advertising materials and other media, in strict compliance with the requirements set forth in the Manual.

Franchisee shall file and keep current, in the county and/or state in which Franchisee's Home is located and at such other places as may be required by law, a "fictitious name certificate" or comparable instrument, for the Trade Name. Franchisee shall not, without Franchisor's prior written approval, use any of the Names and Marks, or the name "BEE HIVE HOMES®," or any form thereof in connection with (i) any corporate, partnership or other entity name or in any corporate or other entity filing with any political subdivision; (ii) any internet-related name (including a domain name); or (iii) any other business. Franchisee hereby agrees that if this Agreement is terminated for any reason, Franchisee shall immediately discontinue use of the Trade Name, as well as the Names and Marks.

IV. INITIAL FRANCHISE FEE AND FRANCHISE ROYALTY

• 4.1. Initial Franchise Fee.

Source: Item 23 — RECEIPTS (FDD pages 34–123)