As an Aplus franchisee, am I allowed to claim any right, title, or interest in the Aplus Marks?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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types, and authorized sources of Sunoco Branded Motor Fuels. All trademark rights and goodwill resulting from your display or use of the Marks and sale of Sunoco Branded Motor Fuels shall inure to Sunoco's benefit. Sunoco reserves the right, without prior notice to you, to change, alter, or modify any of the Marks or their manner of display or use.
You agree that you will not:
- (1) adulterate, mislabel, or misbrand such Motor Fuels;
- (2) contaminate such Motor Fuels;
- (3) add any ingredient to such Motor Fuels without Sunoco's prior written consent;
(4) use the Marks except in connection with the APlus mini market/Express and Sunoco Branded Motor Fuels.
You further agree not to:
- (5) claim any right, title, or interest in or to such Marks;
- (6) directly or indirectly deny or assail or assist others in denying or assailing the sole and exclusive ownership or right to control, as between Sunoco and you, of Sunoco in and to the Marks;
- (7) register, adopt as your own property, or use or assist others in registering, adopting, or using any Marks, advertising, signs, devices, symbols, slogans, designs, or other trade indicia confusingly similar to the Marks; or
- (8) commit other trademark violations or acts that would affect the value of the Marks or Sunoco's good will and ownership rights thereto.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are explicitly prohibited from claiming any rights to the Aplus Marks. The agreement specifies that franchisees cannot claim any right, title, or interest in the Marks. This restriction extends to denying or challenging Sunoco's (the owner of Aplus) exclusive ownership or control of the Marks, or assisting others in doing so. Franchisees are also barred from registering or using any marks, advertising, or trade indicia that are confusingly similar to the Aplus Marks. Any rights to the Marks obtained by a franchisee contrary to these provisions must be held in trust for Sunoco and assigned to Sunoco upon request, free of charge.
This means that as an Aplus franchisee, you are strictly limited to using the Marks as authorized by Aplus and Sunoco, and you cannot take any actions that would suggest you have ownership or control over them. This is a standard practice in franchising, as the franchisor needs to protect its brand identity and ensure consistent use of its trademarks across all franchise locations.
The franchise agreement clarifies that the lease covers the premises only and does not extend to the Aplus service marks, trade dress, or other forms of identification associated with the Aplus franchise, except for use on the premises in accordance with the lease, the Franchise Agreement, and any Motor Fuel Supply Agreement. This further reinforces that franchisees have only a limited right to use the Marks for the specific purpose of operating their franchised business, and no ownership rights are transferred.
This provision is crucial for Aplus to maintain uniformity and protect its brand. Franchisees must adhere to these limitations to avoid violating the franchise agreement and potentially infringing on Sunoco's trademark rights. Prospective franchisees should fully understand these restrictions and ensure they are comfortable operating within these guidelines.