Who validly and exclusively owns modifications and alterations to the design of the Home or to the System for Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes retains exclusive ownership of any modifications or alterations made to the design of the Home or the System, regardless of who makes them. This includes modifications made by both Beehive Homes and the franchisee. 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 might contribute to improvements or changes to the Beehive Homes system or design, they do not gain ownership of those changes. Beehive Homes maintains control over the intellectual property and can implement those changes across the entire franchise system.
For a prospective franchisee, this highlights the importance of understanding that any innovations or improvements they develop for their Beehive Homes location ultimately belong to the franchisor. While franchisees can benefit from using these modifications during their agreement term, they cannot claim ownership or use them independently after the agreement expires or is terminated. This is a common practice in franchising, where maintaining brand consistency and control over the system is crucial for the franchisor.