Can Burros Fries direct a franchisee to not use the Marks or to change the Marks?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Territory, effective ten (10) days after delivery of written notice to Franchisee.
24. FRANCHISEE'S OBLIGATIONS UPON TERMINATION OR EXPIRATION
A. Franchisee Shall Cease Using Names and Marks
Franchisee further agrees that, upon termination or expiration of this Agreement, Franchisee shall immediately and permanently cease to use, by advertising, or any manner whatsoever, any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with us and the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the System. In particular, Franchisee shall cease to use, without limitation, all signage (this includes vehicles with graphics, if applicable), advertising materials, menus, stationery, forms and any other articles, which display the Names and Marks. Franchisee shall make or cause to be made, at its expense, changes directed by us in signage, vehicles (if applicable), building and structures so as to effectively distinguish the surviving business entity, if any, from itsformer appearance and from other existing Burros & Fries Businesses. Franchisee shall comply with the covenant not to compete and the agreement to maintain the confidentiality of proprietary information, as well as return all information that is considered to be Confidential Information under the terms and conditions of this Agreement back to us.
B. Franchisee Shall Cease Operating the Business & Refrain from Notifying Guests
Franchisee shall immediately cease to operate its Business and shall not thereafter, directly or indirectly, represent itself to the public or hold itself out as a present or former franchisee of ours.
In addition, Franchisee shall not give notice of termination or expiration of this Agreement to Franchisee's guests without our prior written consent. We shall have the sole right to notify all of Franchisee's guests of the termination or expiration of this Agreement at the time and manner we determine to be most appropriate. All existing guest and account lists of the Franchisee shall be our property.
Franchisee shall assist us in transferring such lists to us upon termination or expiration of this Agreement at such times and in the manner we require.
Franchisee must immediately tender all new or used inventory of our Proprietary Products, décor, signage, uniforms, apparel, promotional, advertising, marketing materials and/or anything that displays our Marksin addition to all Confidential Information to us and/or our designated affiliates or destroy, if notified by us in writing to do so, all inventory of such items in a timely manner as in accordance with the terms of the Operations Manual and as specified in Section 24.G of this Agreement.
C.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries has specific rights regarding the use of its Names and Marks. As stated in Item 22, upon termination or expiration of the Franchise Agreement, a franchisee must immediately and permanently cease using the Names and Marks in any manner, including advertising. Furthermore, the franchisee is obligated, at their own expense, to make changes to signage, vehicles, buildings, and structures as directed by Burros Fries to effectively distinguish the business from its former appearance and from other Burros Fries businesses.
During the franchise term, franchisees must use only the Names and Marks approved in writing by Burros Fries and only in the manner authorized. The franchisee's right to use the Names and Marks is limited to the usages authorized under the Franchise Agreement, and any unauthorized use constitutes an infringement of Burros Fries' rights and a material breach of the agreement. Burros Fries retains the right to approve or deny any use of printed material bearing any of the Names or Marks, with a 30-day response period for such requests; failure to respond within this period results in the request being deemed denied.
These stipulations ensure that Burros Fries maintains control over its brand identity and protects its trademarks. For a prospective franchisee, this means understanding that the use of the Burros Fries Names and Marks is strictly regulated and subject to the franchisor's approval. It also highlights the importance of adhering to the franchise agreement and operational guidelines to avoid potential breaches and maintain a consistent brand image. Upon termination or expiration, the franchisee must completely remove all branding and comply with any directives from Burros Fries to differentiate the business from the Burros Fries brand.