Does Afuri Ramen Dumpling claim common law rights to its Marks?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Our Common Law Rights to the Marks
We and our affiliate company also claim common law rights to the Marks.
Your Use of the Marks
We will allow you to use these and all other trade names, trademarks, service marks, and logos we now own or may in the future develop for our franchise system. We refer to all of these commercial symbols as the "Marks." The Marks are our exclusive property. You must follow our rules when you use the Marks. You may not use the Marks in any manner we have not authorized in writing. You may not use or give others permission to use the Marks, or any colorable imitation of them, combined with any other words or phrases. You cannot use our Service Marks as part of the name of your business entity or with modifying words, designs or symbols except as we authorize in writing. You may not use our Service Marks in connection with the sale of any unauthorized product or service.
All goodwill associated with the Marks, including any goodwill that might be deemed to have arisen through your activities, will accrue directly and exclusively to our benefit, except as otherwise provided by applicable law.
Source: Item 13 — Trademarks (FDD pages 37–39)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, Afuri Ramen Dumpling and its affiliate company claim common law rights to their Marks. In addition to registered trademarks, common law rights can arise from the actual use of a brand name or logo in commerce, regardless of whether it is officially registered. This means Afuri Ramen Dumpling may have legal rights to protect its brand even for aspects that aren't formally registered with the USPTO. These rights could be based on the history and extent of the brand's use in a particular geographic area.
For a prospective Afuri Ramen Dumpling franchisee, this is important because it reinforces the franchisor's commitment to protecting the brand's identity. Franchisees benefit from a strong, protected brand. The FDD also states that Afuri Ramen Dumpling will allow franchisees to use all trade names, trademarks, service marks and logos that they own or may develop in the future. However, franchisees must adhere to Afuri Ramen Dumpling's rules for using the Marks and cannot use them in any way that hasn't been authorized in writing.
All goodwill associated with the Marks, including any goodwill that might be deemed to have arisen through a franchisee's activities, will accrue directly and exclusively to Afuri Ramen Dumpling's benefit, except as otherwise provided by applicable law. This is a standard clause in franchise agreements, ensuring that the value created by the brand ultimately benefits the franchisor. Franchisees should be aware that they are building equity in the Afuri Ramen Dumpling brand, not in their own independently owned brand. This also means that upon termination of the franchise agreement, the franchisee must discontinue all use of the Marks.
Afuri Ramen Dumpling also has a license agreement with AFURI-JPN, dated March 29, 2018, which grants them the right to use and sublicense the marks to their franchisees. The license agreement is for 10-year renewable terms and may only be terminated for good cause. Because AFURI-JPN is Afuri Ramen Dumpling's parent company, they do not anticipate any issues with the franchisee's use of the Afuri marks.