Who owns the principal trademark licensed to Better Blend franchisees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
The following is the principal trademark that we license to you. This trademark is owned by our affiliate, Better Blend Nutrition, LLC. We do not have a federal registration for our principal trademark. Therefore, our trademark does not have many legal benefits and rights as a federally registered trademark. If our right to use the trademark is challenged, you may have to change to an alternative trademark, which may increase your expenses. An application for registration on the Principal Register of the United States Patent and Trademark Office has been filed.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the principal trademark that Better Blend licenses to its franchisees is owned by Better Blend Nutrition, LLC, which is identified as an affiliate of the franchisor. While Better Blend uses this trademark, it does not have a federal registration for it. As the FDD states, this means the trademark lacks many of the legal benefits and rights that a federally registered trademark would possess.
This lack of federal registration carries potential risks for franchisees. If Better Blend's right to use the trademark is challenged, franchisees may be required to switch to an alternative trademark. This change could lead to increased expenses for the franchisee, as they would need to update signage, marketing materials, and other branded items.
Better Blend does have an application pending for registration on the Principal Register of the United States Patent and Trademark Office. Better Blend also has agreements in place to protect the trademark. Better Blend Nutrition, LLC entered into a Settlement and Trademark Coexistence Agreement dated November 13, 2020, with Better Blends, LLC, a Minnesota limited liability company (as amended by an Addendum dated November 17, 2021), in which our affiliate agreed to not use the words "BETTER" and "BLEND" except in conjunction with restaurant services and direct sales of goods to consumers and not through third parties (e.g. a grocery store), and to not use its marks or promote its goods and services in a manner likely to cause confusion.