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What are the potential consequences if the C12 Group's right to use the pending trademarks is challenged?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

, 2023 | Principal | | | 98,180,817 | September 14, 2023 | Principal | We do not have a federal registration for the two pending trademarks in the preceding table. Therefore, our trademarks do not have many legal benefits and rights as a federally registered trademark. If our right to use the trademarks is challenged, you may have to change to alternative trademarks, which may increase your expenses.

We currently have opposition proceedings regarding our two pending trademarks. The opposition is ongoing, and the parties are working toward a settlement agreement that would allow for the registration of both marks.

You agree to use our current and future trademarks, service marks, trade names, document templates, logotypes, and domain names only in the ways we have approved in advance in writing as we have set

forth in our training and operating manuals or in other routine communications to C12, such a semiannual workshops and via our www.C12forums.com web-based portal for franchisee materials, resources, and information. C12 branding and marks will only be used in conjunction with the delivery of C12's goods and services and not with unaffiliated business which may be transacted by a C12 franchisee.

There are no currently effective material determinations of the USPTO Trademark Trial and Appeal Board, the trademark administrator of any state, or any court. Except as stated above, there are no pending infringements, oppositions, or cancellations concerning the principal trademarks.

Source: Item 13 — TRADEMARKS (FDD pages 32–34)

What This Means (2025 FDD)

According to C12 Group's 2025 Franchise Disclosure Document, because the two trademarks listed are pending registration and not federally registered, they do not have as many legal benefits and rights as a federally registered trademark. If C12 Group's right to use these trademarks is challenged, a franchisee may have to change to alternative trademarks. This change could lead to increased expenses for the franchisee.

Currently, there are opposition proceedings regarding C12 Group's two pending trademarks. However, the parties involved are reportedly working towards a settlement agreement that would allow for the registration of both marks. Despite these proceedings, C12 Group states that there are no currently effective material determinations of the USPTO Trademark Trial and Appeal Board, the trademark administrator of any state, or any court.

C12 Group also states that they have no knowledge of either superior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks in the state where their franchise may be located. Furthermore, there are no agreements currently in effect that significantly limit C12 Group's rights to use or license the use of the principal trademarks in a manner material to the franchise. There is currently no pending litigation, settlement, or agreement that may limit a franchisee's use of any of C12 Group's trademarks.

Disclaimer: This information is extracted from the 2025 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.