What is the C12 Group franchisee prohibited from doing regarding the franchisor's trademarks?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
internet domain names (i.e., .COM, .NET, .ORG) that have been registered with domain name registrars, including Franchisor's primary website. Franchisee agrees to use Franchisor's current and future trademarks, service marks, trade names, logotypes, and domain names only in the ways Franchisor has approved in advance in writing as Franchisor has set forth in its training and operating manuals or in other routine communications to C12 Group franchisees such as semi-annual training workshops and via Franchisor's web-based portal for franchisee materials, resources, and information. Franchisor's branding and marks shall only be used by Franchisee in conjunction with the delivery of approved C12 Group goods and services. Franchisor agrees to indemnify, defend, and hold Franchisee harmless in the event that Franchisee's use of Franchisor's trademarks in accordance with this Agreement infringes upon the intellectual property rights of a third party. Franchisee agrees to notify Franchisor immediately if and when Franchisee learns of an infringement or challenge to Franchisee's use of any of Franchisor's trademarks. Franchisee shall not directly or indirectly contest Franchisor's right to, or use of, the C12 trademarks, trade secrets, or proprietary materials and processes that are part of Franchisor's business format.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group franchisees are restricted in how they can use the company's trademarks and are prohibited from contesting the franchisor's rights to those trademarks. Specifically, franchisees must use the trademarks, service marks, trade names, logotypes, and domain names only in ways that C12 Group has approved in writing. This approval is communicated through training, operating manuals, semi-annual training workshops, and the franchisor's web-based portal. The branding and marks can only be used when delivering approved C12 Group goods and services.
Furthermore, the franchisee is obligated to notify C12 Group immediately if they become aware of any infringement or challenge to the use of the franchisor's trademarks. The franchisee is explicitly prohibited from directly or indirectly contesting C12 Group's rights to, or use of, the trademarks, trade secrets, or proprietary materials and processes that are part of the business format.
Upon termination of the franchise agreement, the franchisee must immediately stop using C12 Group's trade name, trademarks, service marks, symbols, or insignia, as well as any proprietary materials, forms, bulletins, advertising materials, slogans, manuals, or websites related to the name and marks. The franchisee is required to either return these materials to C12 Group or destroy them, as directed by the franchisor. These stipulations are typical in franchising to protect the brand's identity and goodwill.