What happens to a Better Blend franchisee's right to use a trademark after the compliance period for modification or discontinuation?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense. You will have a reasonable period of time to comply with the change, not to exceed 90 days. After such period, you would no longer have the right to use the unmodified or discontinued trademark. Your rights under the franchise agreement do not change, other than the modification or discontinuation of the trademark.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend has the right to require a franchisee to modify or discontinue using a trademark at the franchisee's expense. The franchisee will be given a reasonable period of time to comply with this change, but this period will not exceed 90 days.
After this compliance period, the franchisee no longer has the right to use the trademark that Better Blend has required them to modify or discontinue. However, the franchisee's rights under the franchise agreement do not change, other than the modification or discontinuation of the trademark.
This means that a Better Blend franchisee must be prepared to rebrand if required, and they will be responsible for the costs associated with doing so. While 90 days is provided for compliance, franchisees should consider the potential impact on their business if they need to change their branding. It is important to note that Better Blend's trademarks are not federally registered, which may increase the risk of challenges to their use and the potential need for franchisees to modify or discontinue using a trademark.