What happens if Beauty Bungalows modifies or discontinues the use of a Mark?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
You must modify or discontinue the use of a Mark if we modify or discontinue use. The use of a new or modified trademark may be required, and you may be required to replace existing signs using new signs displaying our new or modified trademark. If this happens, we will reimburse you for your tangible cost of compliance (for example, changing signs). You must not directly or indirectly contest our right to our Marks, trade secrets or business techniques that are part of our business.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, if Beauty Bungalows modifies or discontinues the use of a trademark, franchisees must also modify or discontinue its use. This includes the trademark "Beauty Bungalows" under which the franchise operates, as well as any other authorized marks.
The FDD specifies that Beauty Bungalows may require franchisees to use a new or modified trademark, potentially necessitating the replacement of existing signs to display the updated trademark. However, Beauty Bungalows states that it will reimburse franchisees for the tangible costs associated with this compliance, such as the expense of changing signs.
The agreement emphasizes that franchisees must not contest Beauty Bungalows's rights to its trademarks, trade secrets, or business techniques. This underscores the franchisor's control over its intellectual property and the franchisee's obligation to adhere to the franchisor's branding standards. Beauty Bungalows retains the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee, and the franchisee must notify Beauty Bungalows within three days of learning about any infringement or challenge to the use of their marks.