Does a Big Apple Bagels developer have any ownership interest in the Big Apple Bagels Marks?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
8. MARKS
- A. Developer acknowledges that Developer has no interest whatsoever in or to the Marks and that Developer's right to use the Marks is derived solely from Franchise Agreements entered into between Developer and Franchisor for the purpose of operating BAGELS Stores as contemplated thereunder. Developer agrees that all usage of the Marks by Developer and any goodwill established thereby shall inure to the exclusive benefit of Franchisor and its licensor. Developer further agrees that after the termination or expiration of this Agreement, he will not, except with respect to BAGELS Stores operated by Developer pursuant to Franchise Agreements granted by Franchisor, directly or indirectly, at any time or in any manner identify himself or any business as a franchisee or former franchisee of, or otherwise associated with, Franchisor or use in any manner or for any purpose any Mark or other indicia of a BAGELS Stores or any colorable imitation thereof.
- B. Developer shall not use any Mark as part of any corporate or trade name or with any prefix, suffix, or other modifying words, terms, designs, or symbols, or in any modifying words, terms, designs, or symbols, or in any modified form, nor may Developer use any Mark in connection with any business or activity, other than the business conducted by Developer pursuant to Franchise Agreements entered into between Developer and Franchisor, or in any other manner not explicitly authorized in writing by Franchisor. Developer shall not register the Marks on the Internet or any other computer on-line service, and shall not use the Marks on the Internet in any manner.
- C. Developer shall immediately notify Franchisor in writing of any apparent infringement of or challenge to Developer's use of any Mark, or claim by any person of any rights in any Mark or similar trade name, trademark, or service mark of which Developer becomes aware. Developer shall not communicate with any person other than Franchisor and its counsel in connection with any such infringement challenge or claim. Franchisor shall have sole discretion to take such action as it deems appropriate and the right to exclusively control any litigation, U.S. Patent and Trademark Office proceeding or other administrative proceeding arising out of any such infringement, challenge, or claim or otherwise relating to any Mark.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a developer does not have any ownership interest in the Big Apple Bagels Marks. The agreement states that the developer's right to use the Marks is solely derived from the franchise agreements they enter into with Big Apple Bagels. All usage of the Marks and any goodwill established through that usage exclusively benefits Big Apple Bagels and its licensor.
This means that a Big Apple Bagels developer cannot claim any ownership or rights to the Big Apple Bagels trademarks or service marks. Their right to use these Marks is strictly tied to their active franchise agreements. This is a standard practice in franchising, ensuring that the franchisor maintains control over its brand and intellectual property.
Upon termination or expiration of the development agreement, the developer is prohibited from identifying themselves or any business as a franchisee or former franchisee of Big Apple Bagels, except for Big Apple Bagels Stores operated under existing franchise agreements. They also cannot use any Mark or similar branding associated with Big Apple Bagels. This restriction ensures that the developer does not continue to benefit from the Big Apple Bagels brand after the agreement ends and prevents potential confusion in the marketplace.
Furthermore, the developer cannot use any Mark as part of a corporate or trade name or with any modifying words, terms, designs, or symbols, nor can they register the Marks on the Internet. They must also notify Big Apple Bagels of any apparent infringement or challenge to the use of any Mark. Big Apple Bagels has the sole discretion to take action regarding any infringement, challenge, or claim related to the Marks, reinforcing their control over the brand's intellectual property.