After termination or expiration, is a Burros Fries franchisee prohibited from adopting confusingly similar names and 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees are prohibited from using confusingly similar names and marks after the termination or expiration of their franchise agreement. Specifically, upon termination or expiration, the franchisee must immediately and permanently cease using any confidential information, methods, trade secrets, procedures, and descriptions of products and services associated with Burros Fries. This extends to the Names and Marks, proprietary marks, distinctive forms, slogans, symbols, signage, logos, or devices associated with the Burros Fries system.
This prohibition includes, but is not limited to, all signage, advertising materials, menus, stationery, forms, and any other articles displaying the Burros Fries Names and Marks. The franchisee is responsible for making changes to signage, vehicles, buildings, and structures to effectively distinguish the business from its former appearance as a Burros Fries location. This ensures that the public is not confused or misled into thinking the terminated or expired franchise is still part of the Burros Fries system.
Furthermore, the franchisee is not allowed to identify themselves or any business as a current or former Burros Fries business owner or franchise owner, or use any mark or imitation of a mark that suggests a connection or association with Burros Fries. This restriction is designed to protect Burros Fries' brand identity and prevent unfair competition from former franchisees who might try to capitalize on the brand's goodwill after their agreement ends. The franchisee must also comply with the covenant not to compete and maintain the confidentiality of proprietary information, as well as return all confidential information to Burros Fries.