Who owns the intellectual property rights to materials provided to the Burros Fries franchisee or developed by the franchisee pursuant to the Franchise Agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that we are the exclusive licensor of the Names and Marks all Confidential Information, all intellectual property associated with the Names and Marks and the System, all vendor and supplier relationships, all Employees and guest lists and all guest phone listings/addresses/URLs held by Franchisee. Franchisee agrees that Franchisee will not use these lists for any purpose other than in relation to the Business. Franchisee will, on demand, promptly deliver to us a complete list of Franchisee's employees and guests including information we may request related to such employees and guests. The use of any or all such intellectual property shall not create in Franchisee, or its Owners, if it is an Entity, title or interest in or to any of it except as expressly provided in this Agreement. Neither Franchisee, nor any of its Owners shall directly or indirectly assert any right, title or interest in or to any of the Marks or any other part of the intellectual property other than as provided for in this Agreement. Franchisee acknowledges that we shall own all intellectual property rights to any materials provided to the Franchisee by us, or developed by the Franchisee pursuant to this Agreement. Such ownership rights shall be in all media, whether now known or hereinafter invented, by all means, methods, and processes, including complete and entire interactive rights, and rights to derivative works.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries retains ownership of all intellectual property rights to any materials provided to the franchisee or developed by the franchisee under the Franchise Agreement. This includes all forms of media, whether currently known or developed in the future, and encompasses all methods and processes, including interactive and derivative work rights.
This means that while a franchisee may use these materials to operate their Burros Fries franchise, they do not own them and cannot claim any intellectual property rights over them. This is a fairly standard practice in franchising, as it allows the franchisor to maintain consistency and control over the brand.
The franchisee acknowledges that Burros Fries is the exclusive licensor of the Names and Marks, all Confidential Information, all intellectual property associated with the Names and Marks and the System. The franchisee also acknowledges that they will not use employee or guest lists for any purpose other than in relation to the Burros Fries business. This ensures that the franchisee cannot use the franchisor's intellectual property or confidential information for their own benefit or to the detriment of the Burros Fries system.