Is there a geographic limit to the Beehive Homes non-disclosure agreement?
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, the confidentiality clause in the franchise agreement does not specify a geographic limit to the non-disclosure agreement. The franchisee is obligated to maintain the absolute confidentiality of the Proprietary Information during and after the term of the agreement. Proprietary Information includes all information or materials concerning the development, operation, marketing, and licensing of the Beehive Homes system, including the Standards and the Manual, whether developed by Beehive Homes, the franchisee, or another person.
This means that a Beehive Homes franchisee is restricted from using or disclosing this proprietary information, regardless of location. The franchisee cannot use the proprietary information in any business or for any purpose other than in the development and operation of the Beehive Homes under the System.
Beehive Homes also requires franchisees to adopt and implement procedures to prevent unauthorized use or disclosure of 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. This extends the franchisee's responsibility to ensure that those working for them also maintain the confidentiality of Beehive Homes' proprietary information without geographic limitation.