What are Aplus franchisees prohibited from doing regarding the Marks themselves?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as otherwise provided herein, upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall terminate and Franchisee shall:
- 17.1.1. Immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
- 17.1.2. Cease to use the Trade Secrets or other Confidential Information, the System and the Marks including, without limitation, all slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
- 17.1.3. Take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city or county authorities which contains the name APLUS or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees must cease using the Marks upon termination or expiration of the franchise agreement. Specifically, franchisees must stop using the trade secrets or other confidential information, the system, and the Marks, including all slogans, symbols, logos, advertising materials, stationery, forms, and any other items associated with the Marks.
Furthermore, franchisees must take necessary actions to cancel or assign to Aplus any assumed name or equivalent registration filed with state, city, or county authorities that contains the name APLUS or any other Mark. Franchisees must provide Aplus with satisfactory evidence of compliance within 30 days after termination or expiration of the agreement.
In practical terms, this means that upon the end of the franchise agreement, an Aplus franchisee cannot continue to operate under the Aplus brand or use any of its associated trademarks, logos, or other identifying marks. This is a standard clause in franchise agreements to protect the brand's integrity and prevent confusion among customers. Failure to comply with these requirements can result in legal action by Aplus to enforce its trademark rights.