factual

Is a Burros Fries franchisee allowed to challenge the franchisor's ownership rights in the system?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

With respect to Franchisee's franchised use of Burros & Fries Franchise, Inc.'s Names and Marks pursuant to this Agreement, Franchisee agrees that:

  1. Franchisee shall use only the Names and Marks as are approved in writing by us for Franchisee's use, and shall use them only in the manner authorized and permitted by us and that in any use whatsoever of the Names and Marks of ours that the Names and Marks are identified as being registered to or owned by Burros & Fries Franchise, Inc., with exclusive rights give to us;

Franchisee shall use the Names and Marks only in connection with the operation of the Business and in advertising for the Business conducted at or from the Franchisee's web page and Accepted Location;

Franchisee shall use and display, as we may require in the operation of the Business, a notice in the form approved by us indicating that Franchisee is a "Franchise of Burros & Fries" and that the Names and Marks are used by Franchisee under such Franchise.

Franchisee must indicate to third parties that it is "independently owned and operated" and that we own the Marks and Franchisee uses them under a license;

Unless otherwise authorized or required by us, Franchisee shall operate and advertise the Business under the Name and Mark "Burros & Fries";

Franchisee's right to use the Names and Marks is limited to such usages as are authorized under this Agreement, and any unauthorized use shall constitute an infringement of our rights and a material breach of this Agreement;

Franchisee must obtain our approval for any use of any item of printed material of any kind bearing any of the Names or Marks, unless we supplied the item.

We shall approve or deny Franchisee's request, which approval is in our sole discretion, within thirty (30) days of receipt of Franchisee's written request.

If we fail to respond to Franchisee's request within said thirty (30) day period, Franchisee's request shall be deemed denied.

Franchisee shall use such notices of Trademark registrations and copyrights as we specify.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to the 2024 Burros Fries Franchise Disclosure Document, franchisees are granted a limited license to use Burros Fries' names and marks, but they cannot challenge the franchisor's ownership or rights to those names and marks. The franchisee must use only the names and marks approved in writing by Burros Fries and in the manner authorized. Any unauthorized use of the names and marks constitutes an infringement of Burros Fries' rights and a material breach of the agreement.

Burros Fries franchisees must also indicate to third parties that they are independently owned and operated and that Burros Fries owns the marks, which the franchisee uses under a license. The franchisee's right to use the names and marks is limited to the usages authorized under the agreement.

These stipulations protect Burros Fries' brand identity and intellectual property. A franchisee's failure to comply with these requirements could lead to legal action and termination of the franchise agreement. Prospective franchisees should fully understand these restrictions and obligations before entering into a franchise agreement with Burros Fries.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.