Upon termination of the Burros Fries franchise agreement, will the franchisee be compensated for the value of licensed copyrights?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is not compensated for the value of licensed copyrights. Instead, the franchisee must immediately and permanently cease using any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with Burros Fries, including the Names and Marks, proprietary marks, distinctive forms, slogans, symbols, signage, logos, or devices associated with the System.
Specifically, the franchisee must stop using all signage, advertising materials, menus, stationery, forms, and any other articles displaying the Names and Marks. The franchisee is responsible for making changes to signage, vehicles, buildings, and structures to distinguish the business from its former appearance as a Burros Fries franchise.
This obligation ensures that after termination or expiration, the franchisee cannot continue to benefit from the Burros Fries brand and intellectual property. The franchisee must also comply with the covenant not to compete and maintain the confidentiality of proprietary information, returning all Confidential Information to Burros Fries. This protects Burros Fries's brand identity and market position, preventing former franchisees from unfairly competing using the franchisor's established trademarks and systems.