What constitutes an infringement of Beyond Juicery Eatery's trademark rights by the franchisee?

thereof. Neither you nor any Principal Owner shall interfere with our efforts to obtain registration or ownership of any name, trademark, service mark, or other identifying name anywhere in the world.

• I. You shall cooperate with us to prove the continuous and effective use of the Trademarks, including without limitation, in connection with any registration or any renewal thereof.

• 8.02 Franchisee and each Principal Owner agree and acknowledge that:

• A. Our affiliate, Beyond Juicery Eatery IP, LLC is the exclusive owner of all right, title and interest in and to the Trademarks and the goodwill associated therewith;

• B. The Trademarks identify us as the source or origin of goods and services provided under such marks and the System;

• C. Neither you nor any Principal Owner shall directly or indirectly contest the ownership or the validity of the Trademarks;

• D. You do not have, and shall not acquire by use pursuant to this Agreement, any ownership or other interest in or to the Trademarks, except the right and license granted herein, subject in all respects to the terms hereof;

• E. Any and all goodwill arising from your use of the Trademarks shall inure exclusively to us and Beyond Juicery Eatery IP, LLC without compensation; and

• F. Your right and license to use the Trademarks is non-exclusive and, subject to this Agreement. We have and retain all rights relating to the Trademarks and the use thereof including, without limitation, the right to:

  • (1) Grant other licenses to use the Trademarks;

• (2) Develop and establish Other Concepts using the Trademarks or other names or marks and to grant licenses thereto without providing any rights therein to you; and

• (3) Engage, directly or indirectly, at wholesale, retail or otherwise, in (i) the production, distribution, license and/or sale of products and services under the Trademarks or other names or marks and (ii) the use, in connection with such production, distribution and sale, of any and all trademarks, trade names, service marks, logos, insignia, trade dress, slogans, emblems, symbols, designs and other identifying characteristics as may be developed or used from time to time by us.

9. ADVERTISING AND MARKETING

• 9.01 You recognize the value of advertising and that standardized advertising programs enhance the goodwill and public image of the System.
• A. You shall expend not less than one percent (1%) of Gross Sales per month for local advertising within your Designated Area. Your local advertising may utilize media to which we have granted consent including: (1) Newspapers, magazines and other periodicals; (2) Radio/television; (3) Outdoor advertising (e.g., billboards or signs); (4) Transit advertising and direct mail; and (5) Such other media to which we consent.

You shall not advertise in any form outside your Designated Area without our prior written consent. On a monthly basis, you will report to us your local advertising in a form we require. If you fail to spend one percent (1%) of Gross Sales per month on local advertising, you shall pay the difference to us as additional Royalty. We have no obligation to spend this money in your Designated Area or any area around your Designated Area.

B. We require you to spend a minimum amount of Ten Thousand and 00/100 Dollars ($10,000.00) on the advertising and promotion of your Restaurant including, without limitation, newspaper, direct mail, promotional items, and other media during the first ninety (90) days of the operation of your Restaurant ("Grand Opening Advertising"). You shall conduct the Grand

Opening Advertising in accordance with the specifications set forth in the Operations Manuals. You shall submit to us a Grand Opening marketing plan within forty-five (45) days prior to the Restaurant being open for business. All Grand Opening Advertising expenditures must obtain our prior approval. We may, in our sole discretion, require you to pay the Grand Opening Advertising expenses directly to us, in which event we will spend such amounts on your behalf. During the first ninety (90) days of the operation of your Restaurant, you shall expend funds on Grand Opening Advertising in lieu of the local advertising. You must pay the Marketing Fee at all times. On the date of the completion of the first ninety (90) days of operation of your Restaurant, you shall begin to spend one percent (1%) of Gross Sales per month on local advertising in accordance with this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 60–337)