From whom are Beehive Homes' rights to the Names and Marks, Trade Secrets and Copyrighted Materials acquired?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Franchisee further acknowledges and agrees that Franchisor's rights to the Names and
Marks, Trade Secrets and Copyrighted Materials are acquired by license from its Affiliate. Franchisee further acknowledges and agrees that all trademarks, service marks, trade names, including the Trade Name, and copyrights, together with all ancillary signs, symbols, slogans, phrases, emblems, designs and other indicia developed by or for Franchisee for use in connection with the Home and the System are the sole and exclusive property of Franchisor and may be used by Franchisee only during the Term of this Agreement and only as provided in this Agreement. Immediately upon termination or expiration of this Agreement, the Franchisee shall cease and desist from using said Names and Marks, Trade Secrets and Copyrighted Materials and shall return to Franchisor or destroy, at the Franchisor's election, all documents, instructions, displays, and advertising items and the like relating to the Names and Marks, Trade Secrets and Copyrighted Materials.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes acquires its rights to the Names and Marks, Trade Secrets, and Copyrighted Materials through a license from its affiliate. This means that while Beehive Homes franchises the use of these assets to its franchisees, the actual ownership and control of these assets reside with its affiliate company.
For a prospective franchisee, this arrangement has several implications. First, the franchisee's right to use the Names and Marks, Trade Secrets, and Copyrighted Materials is nonexclusive and depends on the terms of the franchise agreement. Beehive Homes retains the right to operate its own homes or grant licenses to others. Second, upon termination or expiration of the franchise agreement, the franchisee must immediately cease using these assets and return or destroy all related materials as directed by Beehive Homes.
This is a fairly standard practice in franchising, where the franchisor licenses its intellectual property to franchisees. It is important for the franchisee to understand the scope and limitations of this license, as well as the obligations regarding the use and protection of these assets. Franchisees should pay close attention to the terms and conditions outlined in the franchise agreement and related documents to ensure compliance and avoid potential disputes.