What does the Apricot Lane FDD say about the use of registered marks?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 7: PROPRIETARY MARKS
A. Ownership of the Marks
FRANCHISEE acknowledges that FRANCHISOR is the owner of the Marks and FRANCHISEE's right to use the Marks is derived solely from this Agreement and is limited to the conduct of the Franchised Business by FRANCHISEE in compliance with this Agreement and all applicable standards, specifications, and operating procedures prescribed by FRANCHISOR from time to time during the term of this Agreement. Any unauthorized use of the Marks by FRANCHISEE is a breach of this Agreement and an infringement of the rights of FRANCHISOR in and to the Marks. FRANCHISEE acknowledges that all use of the Marks by FRANCHISEE and any goodwill established by FRANCHISEE's use of the Marks shall inure to the exclusive benefit of FRANCHISOR and that this Agreement does not confer any goodwill or other interests in the Marks upon FRANCHISEE. FRANCHISEE shall not, at any time during the term of this Agreement or after its termination or expiration, contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of any of the Marks. All provisions of this Agreement applicable to the Marks apply to any additional trademarks, service marks, and commercial symbols authorized for use by and licensed to FRANCHISEE by FRANCHISOR after the date of this Agreement, all of which shall be considered part of the Marks.
B. Use of Marks
FRANCHISEE shall not use any Mark or portion of any Mark as part of any corporate or legal name, or with any prefix, suffix, or other modifying words, terms, designs, or symbols, or in any modified form, nor may FRANCHISEE use any Mark in connection with the sale of any unauthorized product or service or in any other manner not expressly authorized in writing by FRANCHISOR. FRANCHISEE shall give such notices of trademark and service mark registrations as FRANCHISOR specifies and obtain such fictitious or assumed name registrations as may be required under applicable law, and at FRANCHISEE's expense. FRANCHISEE shall not use any of the Marks in any manner that has not been specified or approved in writing by FRANCHISOR.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, Apricot Lane owns the rights to its marks, and the franchisee's right to use them is derived solely from the franchise agreement. This use is specifically limited to operating the franchised business in compliance with the agreement's standards and operating procedures. Any unauthorized use of the marks constitutes a breach of the agreement and an infringement of Apricot Lane's rights. All goodwill generated through the franchisee's use of the marks benefits Apricot Lane exclusively, and the agreement does not grant the franchisee any ownership or other interests in the marks. The franchisee cannot contest the validity or ownership of the marks, even after the agreement terminates. These provisions extend to any additional trademarks or service marks that Apricot Lane authorizes the franchisee to use later.
The FDD states that franchisees cannot use any mark or portion of a mark as part of their corporate or legal name, or with any modifications, without express written authorization from Apricot Lane. Franchisees must also provide trademark and service mark registration notices as specified by Apricot Lane and obtain any necessary fictitious or assumed name registrations at their own expense. All use of the marks must be in a manner specified or approved in writing by Apricot Lane.
Apricot Lane's FDD emphasizes the importance of protecting its brand identity and ensuring consistent use of its trademarks. By retaining ownership and control over the marks, Apricot Lane aims to maintain the quality, standards, and reputation associated with its brand. This is a common practice in franchising, as it allows the franchisor to protect its brand and ensure uniformity across all franchise locations. Franchisees benefit from using established and recognized trademarks, but they must adhere to the franchisor's guidelines to maintain brand consistency and avoid potential legal issues.