Does a Bombs Away franchisee have the right to sublicense the Marks associated with the franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
s order, Franchisee must temporarily cease operations of the Business and remedy the dangerous condition. Bombs Away Franchising shall have no liability to Franchisee or any other person for action or failure to act with respect to a dangerous condition.
ARTICLE 12. MARKS
12.1 Authorized Marks. Franchisee shall use no trademarks, service marks or logos in connection with the Business other than the Marks. Franchisee shall use all Marks specified by Bombs Away Franchising, and only in the manner as Bombs Away Franchising may require. Franchisee has no rights in the Marks other than the right to use them in the operation of the Business in compliance with this Agreement. All use of the Marks by Franchisee and any goodwill associated with the Marks, including any goodwill arising due to Franchisee's operation of the Business, will inure to the exclusive benefit of Bombs Away Franchising.
12.2 Change of Marks. Bombs Away Franchising may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after Bombs Away Franchising makes any such change, Franchisee must comply with the change, at Franchisee's expense.
12.3 Infringement.
- (a) Defense of Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee does not have the right to sublicense the Marks associated with the franchise. The agreement specifies that the franchisee only has the right to use the Marks in the operation of the business and in compliance with the agreement. All goodwill associated with the Marks, including any goodwill arising due to the franchisee's operation of the business, will benefit Bombs Away exclusively.
Bombs Away retains the right to add, modify, or discontinue any Marks used under the system, and the franchisee is obligated to comply with these changes at their own expense. This ensures that Bombs Away maintains control over its brand and can adapt its Marks as needed. The franchisee's use of the Marks is strictly limited to the operation of their Bombs Away business, and they cannot use the Marks in any other context without explicit permission.
If a franchisee becomes aware of any potential infringement of a Mark by a third party, they must promptly notify Bombs Away. Bombs Away has the exclusive right to control any legal action related to possible infringement of the Marks. This further emphasizes that franchisees do not have the authority to sublicense or manage the Marks independently. The Marks are a critical asset of the Bombs Away franchise system, and their use is carefully controlled by the franchisor to maintain brand consistency and protect the brand's reputation.