Can Better Blend require a franchisee to modify or discontinue using a trademark?
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. The franchisee is responsible for the expense of this modification or discontinuation. The franchisee will be given a reasonable period of time to comply with the change, but this period will not exceed 90 days. After this period, the franchisee no longer has the right to use the trademark that was modified or discontinued.
This clause in the franchise agreement means that a Better Blend franchisee could be forced to rebrand their location at their own cost if Better Blend deems it necessary. This could be due to a conflict with another trademark, a change in Better Blend's branding strategy, or other reasons. The franchisee's rights under the franchise agreement do not change, other than the modification or discontinuation of the trademark.
It is important to note that Better Blend does not have a federal registration for its principal trademark. This means that Better Blend's trademark does not have as many legal benefits and rights as a federally registered trademark. If Better Blend's right to use the trademark is challenged, a franchisee may have to change to an alternative trademark, which may increase their expenses. Better Blend is aware of existing food-service businesses with similar names, which may have superior rights in their local trade areas. Better Blend cannot guarantee exclusive or superior rights to their mark in all geographical areas.