What is the condition for Atwell Suites to use the Customer's trademarks for promotions?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.1 Customer grants Company the exclusive rights to advertise, market and promote Beverages at the Hotels and/or in connection with the Hotels.
These rights include a Beverage-exclusive license to use, subject to Section 5 above, Customer's trademarks on a royalty free basis to promote Company's Beverages in promotions, including joint promotions with Company's other customers.
- 6.2 NO COMPETITIVE ADVERTISING. Except as otherwise permitted under the terms of this Agreement, Customer will not depict, advertise, promote or merchandise any Competitive Beverages anywhere in or in association with the Hotels.
Customer will not enter into any agreement or relationship whereby any Competitive Beverages are associated in any advertising or promotional activity of any kind with Customer, the Hotels, or any of the trademarks of Customer.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, Atwell Suites, through its agreement with the Customer, has specific rights regarding the use of trademarks for promotional activities. Atwell Suites is granted the exclusive right to advertise, market, and promote beverages at the hotels and in connection with the hotels. This includes a beverage-exclusive license to use the Customer's trademarks on a royalty-free basis. However, this use is subject to a condition outlined in Section 5 of the agreement, which is not detailed in this excerpt.
This arrangement allows Atwell Suites to integrate the Customer's trademarks into its promotional campaigns for beverages, potentially enhancing the marketing impact through brand association. The use of Customer's trademarks is royalty-free, meaning Atwell Suites does not have to pay additional fees for this privilege, which can reduce marketing costs. All use of the other party's trademarks will inure to the benefit of trademark owner.
The agreement also includes a clause preventing competitive advertising, ensuring that the Customer does not promote any competing beverages in association with the hotels or Atwell Suites' trademarks. This restriction helps maintain the exclusivity of the promotional arrangement and prevents conflicts of interest. The Customer cannot enter into agreements that associate competitive beverages with the Hotels.
Prospective franchisees should be aware of these trademark usage rights and restrictions, as they define the scope of permissible promotional activities. Understanding the specifics of Section 5, which governs the use of Customer's trademarks, is crucial for ensuring compliance and maximizing the benefits of the promotional arrangement. Franchisees should seek clarification from Atwell Suites regarding the details of Section 5 to fully understand their obligations and rights.