What happens to the Licensed Marks associated with Bang Cookies upon termination?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
hout limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Shop that was the subject of this Agreement and cease to operate such Shop under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Bang Cookies franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the operations manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or constitute Franchisor's trade secrets;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must immediately cease using the Licensed Marks in any manner. This includes the 'Bang Cookies' word mark, associated logos, and any other trademarks, service marks, or trade names designated for use in a Bang Cookies Business.
Specifically, the franchisee must permanently stop operating as a Bang Cookies franchise owner and cannot represent themselves as a current or former franchisee. They are prohibited from using the System, which includes the Licensed Marks, Confidential Information, Business Management System Data, and the operations manual. This extends to all advertising, marketing, media, and any other information associated with Bang Cookies.
In practical terms, this means that a former Bang Cookies franchisee must rebrand their business entirely. They cannot use any of Bang Cookies' logos, trademarks, or other identifying marks. This is a standard practice in franchising to protect the brand's integrity and prevent consumer confusion. The franchisee must also return the operations manual and other confidential materials to Bang Cookies, although they can retain copies of the Franchise Agreement and other correspondence as permitted by law.