What might happen to an Auntie Annes franchisee if their right to use unregistered trademarks is challenged?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
At this time, we do not have a registration for these trademarks. Therefore, these trademarks do not have many of the legal benefits and rights as a federally-registered trademark. If your right to use these trademarks is challenged, you may have to change to an alternative trademark which will increase your expenses.
You must comply with our instructions to modify or discontinue use of any Proprietary Mark or to adopt or use additional or substituted Proprietary Marks. We will not be liable to you for any resulting expenses.
Source: Item 13 — TRADEMARKS (FDD pages 80–82)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, some of the brand's trademarks are not federally registered. This means they lack some of the legal protections afforded to registered trademarks. If an Auntie Anne's franchisee's right to use these unregistered trademarks is challenged, the franchisee may be required to switch to an alternative trademark.
Switching to a different trademark could lead to increased expenses for the franchisee. These expenses could include the costs of updating signage, marketing materials, and other branded items to reflect the new trademark. It is important to note that Auntie Anne's may modify or discontinue the use of any proprietary mark, and will not be liable for any resulting expenses to the franchisee.
While some of Auntie Anne's trademarks are registered with the USPTO, others have applications pending. The Franchise Agreement applies to all trademarks, service marks, and trade dress authorized for the franchisee's use during the term of the agreement. Auntie Anne's may also specify other proprietary marks that the franchisee may use, and franchisees must comply with the proper use and marking of these marks as indicated in the manuals.