What does Section 6, 'Licensed Marks', of the Batteries Plus Bulbs Franchise Agreement pertain to?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
6. LICENSED MARKS
- A.
Ownership And Goodwill Of Licensed Marks.
Franchisee acknowledges that Franchisee has no interest in or to the Licensed Marks and that Franchisee's right to use the Licensed Marks is derived solely from this Agreement and is limited to the conduct of business in compliance with this Agreement and all applicable specifications, standards and operating procedures that Franchisor requires during the term of the Franchise.
Franchisee agrees that its use of the Licensed Marks and any goodwill established exclusively benefits Franchisor, and that Franchisee receives no interest in any goodwill related to Franchisee's use of the Licensed Marks or the System.
Franchisee must not, at any time during the term of this Agreement or after its termination or expiration, contest or assist any other person in contesting the validity or ownership of any of the Licensed Marks.
- B.
Limitations On Franchisee's Use Of Licensed Marks.
Franchisee agrees to use the Licensed Marks as the sole identification of the Store, but Franchisee must identify himself as the independent owner in the manner Franchisor directs.
Franchisee must not use any Licensed Mark as part of any corporate or trade name or in any modified form, nor may Franchisee use any Licensed Mark in selling any unauthorized product or service or in any other manner not expressly authorized in writing by Franchisor.
Franchisee agrees to display the Licensed Marks prominently and in the manner Franchisor directs on all signs and forms.
Subject to Franchisor's rights described in this Agreement, Franchisee agrees to obtain fictitious or assumed name registrations as may be required under applicable law.
- C.
Restrictions On Internet And Website Use.
Franchisor retains the sole right to advertise the System on the Internet and to create, operate, maintain and modify, or discontinue the use of, a website using the Licensed Marks.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Agreement, Section 6, titled 'Licensed Marks,' outlines the franchisee's rights and responsibilities regarding the use of Batteries Plus Bulbs' trademarks, service marks, logos, and commercial symbols. This section emphasizes that the franchisee's right to use these Licensed Marks is solely derived from the Franchise Agreement and is contingent upon operating the business in compliance with Batteries Plus Bulbs' standards and procedures. The franchisee acknowledges that they have no ownership interest in the Licensed Marks and that any goodwill generated through their use benefits Batteries Plus Bulbs exclusively. Franchisees are prohibited from contesting the validity or ownership of the Licensed Marks during and after the term of the agreement.
Section 6 also places limitations on how a Batteries Plus Bulbs franchisee can use the Licensed Marks. While franchisees must use the Licensed Marks as the primary identification for their store, they must also identify themselves as the independent owner in a manner directed by Batteries Plus Bulbs. Franchisees are not allowed to use any Licensed Mark as part of their corporate or trade name, modify the marks, or use them in connection with unauthorized products or services. The agreement requires franchisees to display the Licensed Marks prominently on all signs and forms as instructed by Batteries Plus Bulbs and to obtain any necessary fictitious or assumed name registrations.
Furthermore, the Franchise Agreement clarifies that Batteries Plus Bulbs retains the exclusive right to advertise the System on the Internet and to manage any website using the Licensed Marks. This restriction prevents franchisees from independently promoting the Batteries Plus Bulbs brand online without the franchisor's direct oversight and control, ensuring brand consistency and quality across all digital platforms.