Does a Burros Fries franchisee gain any ownership interest in the franchisor's copyrights through their use?
Burros_Fries Franchise · 2024 FDDAnswer 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:
- 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 do not gain ownership of the franchisor's copyrights through their use of approved materials. The franchisee is only licensed to use the Burros & Fries names and marks in an approved manner. Any unauthorized use of the names and marks is considered an infringement of Burros & Fries' rights and a material breach of the agreement. Franchisees must also use the trademark and copyright notices as specified by Burros Fries.
Burros Fries retains all rights not expressly granted to the franchisee. This includes the right to operate or authorize others to operate any kind of business that is not substantially similar to a Burros & Fries business within or outside the franchisee's territory, regardless of whether they use the Burros Fries marks and system. Burros Fries also reserves the right to develop, distribute, and sell Burros Fries-branded products and kitchen equipment through any distribution channel other than the franchisee's Burros Fries business.
Furthermore, Burros Fries maintains ownership of the copyright and intellectual property rights to the franchisee's web page housed within the corporate website. While franchisees can customize parts of their web page with approval, Burros Fries, its affiliates, or approved vendors must perform all maintenance, changes, edits, or updates. If a court determines that the customizations are not works for hire, the franchisee agrees to assign all copyright and other intellectual property rights to Burros Fries.