factual

Does the Burros Fries franchisee obtain any ownership interest in the Names and Marks through the franchise agreement?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

ating Manual as well as our policy statements, which underlie the goodwill associated with and symbolized by the Names and Marks.

B. Franchisee is Licensed to Use Names and Marks

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;

    1. 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;
    1. 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;
    1. Unless otherwise authorized or required by us, Franchisee shall operate and advertise the Business under the Name and Mark "Burros & Fries";
    1. 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;
    1. 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.
    1. Franchisee shall not use the Names and Marks to incur any obligations or indebtedness on our behalf;
    1. Franchisee shall not use the Names and Marks or any part thereof as part of its corporate or other legal name;
    1. Except as otherwise permitted in this Agreement, Franchisee shall not use the Names and Marks or any part thereof in any form on the Internet, including but not limited to, addresses, domain names, URL's, Websites, links, metatags, locators and search techniques;
    1. Franchisee shall comply with our instructions in filing and maintaining the requisite trade name or fictitious name registration, and shall execute any documents deemed necessary by us or our counsel to obtain protection for the Names and Marks or to maintain their continued validity and enforceability;
    1. In the event any litigation involving the Names and Marks is instituted or threatened against Franchisee, Franchisee shall promptly notify us and shall cooperate fully with us in defending such litigation. Franchisee agrees to execute any and all instruments and documents, render such assistance, and do such acts or things as may, in the sole opinion of us, reasonably be necessary or advisable to protect and maintain the interests of us or any other interested party in the Names or Marks.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to the 2024 Burros Fries Franchise Disclosure Document, franchisees do not acquire any ownership interest in the company's Names and Marks. Instead, franchisees are granted a limited license to use the Names and Marks specifically for operating their franchised Burros Fries business.

The franchise agreement strictly controls how franchisees can use the Burros Fries Names and Marks. Franchisees must adhere to the franchisor's written approvals and guidelines, ensuring consistent brand representation. They can only use the Names and Marks in connection with their Burros Fries business and its advertising. Franchisees must also clearly indicate to third parties that they are independently owned and operated under a Burros Fries franchise, using the Names and Marks under a license from the company.

Upon termination or expiration of the franchise agreement, the franchisee's right to use the Burros Fries Names and Marks immediately ceases. The franchisee must discontinue all use of the Names and Marks in advertising and on any materials, including signage and menus. This underscores that the franchisee's use of the Names and Marks is solely by virtue of the franchise agreement and does not grant any ownership rights.

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.