Is the franchisee's right to use the trademarks of Beyond Juicery Eatery exclusive or non-exclusive?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 FDD, a Beyond Juicery Eatery franchisee's right to use the company's trademarks is non-exclusive. This means that Beyond Juicery Eatery retains the right to grant licenses to others, including competitors, to use the same trademarks. The franchisee's right to use the trademarks is subject to the terms of the franchise agreement. Beyond Juicery Eatery retains all rights relating to the trademarks, including the right to grant other licenses and develop other concepts using the trademarks without providing any rights to the franchisee. They also have the right to engage in the production, distribution, and sale of products and services under the trademarks.
This non-exclusive right has several implications for a prospective Beyond Juicery Eatery franchisee. The franchisee must acknowledge that Beyond Juicery Eatery IP, LLC is the exclusive owner of all rights to the trademarks and that any goodwill arising from the franchisee's use of the trademarks inures exclusively to Beyond Juicery Eatery and its affiliate. The franchisee cannot contest the ownership or validity of the trademarks and cannot acquire any ownership interest in them, except for the license granted in the agreement.
Beyond Juicery Eatery also has the right to use the trademarks to develop other concepts and grant licenses to others without providing any rights to the franchisee. Furthermore, Beyond Juicery Eatery can engage in the production, distribution, and sale of products and services under the trademarks, potentially competing with the franchisee. This arrangement is typical in franchising, as it allows the franchisor to expand the brand's reach through various channels and partnerships.
For a prospective franchisee, it is crucial to understand that the non-exclusive nature of the trademark license means that Beyond Juicery Eatery can authorize others to operate under the same brand, potentially increasing competition. However, it also allows Beyond Juicery Eatery to adapt and expand the brand in response to market changes, which could ultimately benefit the entire franchise system. Franchisees should carefully consider these factors and discuss any concerns with Beyond Juicery Eatery before entering into a franchise agreement.