If Bevaris Alliance modifies or discontinues a trademark, will they reimburse for intangible costs of compliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
You must modify or discontinue the use of a trademark if we modify or discontinue it. If this happens, we will reimburse you for your tangible costs of compliance (for example, changing signs). You must not directly or indirectly contest our right to our trademarks, trade secrets, or business techniques that are part of our business.
Source: Item 13 — TRADEMARKS (FDD pages 14–16)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, if Bevaris Alliance modifies or discontinues a trademark, franchisees are required to comply with the changes. However, Bevaris Alliance will only reimburse franchisees for tangible costs of compliance, such as the cost of changing signs.
This means that Bevaris Alliance will not cover intangible costs. Intangible costs could include things like lost business due to rebranding, the cost of updating marketing materials beyond signage, or any perceived loss of goodwill associated with the old trademark. Franchisees should be prepared to absorb these potential costs if a trademark modification or discontinuation occurs.
In the franchise industry, it is common for franchisors to cover tangible costs associated with trademark changes, as these are direct and easily quantifiable expenses. However, reimbursement for intangible costs is less common due to the difficulty in accurately assessing and verifying such losses. Prospective Bevaris Alliance franchisees should consider this policy when evaluating the potential financial risks and rewards of investing in the franchise.