Can a Buona franchisee use the marks in any manner they choose?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1 Marks.
It is understood and agreed that the license granted under this Agreement to use the Marks applies only to use in connection with the operation of the Franchised Business at the Approved Location set forth on Exhibit A, and includes only the Marks as are now designated or which may hereafter be designated, and does not include any other mark, name, or indicia of origin of Franchisor now existing or which may hereafter be adopted or acquired by Franchisor.
Franchisee acknowledges that it has not acquired any right, title, or interest in the Marks except for the right to use the Marks in the operation of the Franchised Business in compliance with this Agreement.
- 5.3 Conditions and Limitations.
With respect to Franchisee's use of the Marks pursuant to this Agreement, Franchisee acknowledges and agrees that:
(a) Franchisee shall not use any of the Marks as part of Franchisee's electronic mail address (except for any e-mail address assigned by Franchisor), or as part of any URL, web page, domain name, locator, link, metatag, or on any sites on the internet or the world wide web;
(b) Franchisee shall use no service mark or trademark other than the Marks or any other marks as may be specified by Franchisor for use in the identification, marketing, promotion, or operation of the Franchised Business;
(c) Franchisee shall not hold out or otherwise use the Marks to perform any activity or incur any obligation or indebtedness in such manner as might, in any way, make Franchisor liable therefore, without Franchisor's prior written consent; and
Franchisee shall, in all advertising and promotion and promotional materials, display its business name only in obvious conjunction with the phrase "an independent Buona/The Original Rainbow Franchisee" or with other words and in other phrases so as to identify itself as an independent owner of the Franchised Business, or as otherwise may be required in the Manuals.
Franchisee shall display a standard sign in the Franchised Business, as may be specified by Franchisor, indicating to the public that the Franchised Business is independently owned and operated as a franchisee or licensee of the System.
- 5.6 Use Outside the Scope of License.
Franchisee acknowledges that the use of the Marks outside the scope of this Agreement, without Franchisor's prior written consent, is an infringement
of Franchisor's and Franchisor's affiliate's exclusive right to use the Marks. During the Term and after the expiration or termination of this Agreement, Franchisee covenants not to, directly or indirectly, commit an act of infringement or contest or aid in contesting the validity of ownership of the Marks, or take any other action in derogation of Franchisor's ownership of the Mars.
- 5.7 Mark Infringement.
Franchisee shall immediately notify Franchisor in writing of any suspected infringement of, or challenge to, the validity of the ownership of, or Franchisor's and Franchisor's affiliate's right to use, the Marks.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee's use of the marks is strictly limited and controlled by Buona. The franchisee's right to use the marks applies only to the operation of the franchised business at the approved location and includes only the marks designated by Buona. Franchisees do not acquire any right, title, or interest in the marks beyond this specific usage. Any improvements or additions to the system, including new trademarks or logos, developed by the franchisee become the property of Buona.
Buona franchisees cannot use the marks as part of their email address (unless assigned by Buona), URL, web page, domain name, or metatag. They are restricted to using only the marks specified by Buona for identification, marketing, and operation of the franchised business. Franchisees also cannot use the marks in a way that incurs obligations or liabilities for Buona without prior written consent. They must assist Buona in protecting the marks and maintaining their validity.
Furthermore, franchisees must identify themselves as independent owners in all advertising and promotional materials, using the phrase "an independent Buona/The Original Rainbow Franchisee" or similar wording. They must also display a standard sign indicating independent ownership. Using the marks outside the scope of the franchise agreement is considered an infringement. Franchisees must notify Buona of any suspected infringement of the marks and cooperate in any related litigation. Overall, Buona retains significant control over the use of its marks to maintain quality and protect its brand identity.