factual

What is the purpose of C3 Wellness Spa's Practice engaging the Manager?

C3_Wellness_Spa Franchise · 2024 FDD

Answer from 2024 FDD Document

Party. Nothing will require, directly or indirectly, that either Party refer or direct any patients to the other Party. If any legislation, regulation or government policy is passed or adopted, the effect of which would cause either Party to be in violation of such laws due to the existence of any provision of this Schedule B(e), then the Parties agree to negotiate in good faith for a period of 30 days to modify the terms of this Schedule B(e) to comply with applicable law. Should the Parties fail to agree upon modified terms during such 30-day period, either Party may terminate upon notice.

  • 1.04. Survival. Upon expiration or termination of this Agreement for any reason, the terms of Section 1.02(d) will survive until all amounts due by Practice are paid in full and/or until Practice's obligations under such provisions are fulfilled; and Section 1.02(b) and (e) will survive for five years.

Schedule B(m) License Agreement

  • 1.01. Nonexclusive License. Subject to the terms and conditions of this Agreement, Manager grants to Practice a limited, nonexclusive, nontransferable license to use Manager's Trademark "C3 Wellness" in connection with and in furtherance of the operation of Practice's operations including the use of "C3 Wellness" and in Practice's assumed name at Practice's physical address located at _____________________________________. In partial consideration of Manager's grant of the foregoing rights, Practice covenants with Manager that Practice will not market, advertise, or otherwise operate its business under any name or Trademark(s) other than Manager's Trademark during the Term unless otherwise required by law.
  • 1.02. Ownership & Goodwill. Subject to the rights granted in this Agreement, all title to and the rights in the Trademark and the associated goodwill are the exclusive property of Manager and/or its licensor. Practice agrees that its use of any of the Manager's Trademark pursuant to the expressly rights granted under this Agreement will not create any right, title, or interest in or to Manager's Trademark other than as set forth in this Agreement, and that all goodwill associated with Manager's Trademark, including any goodwill generated through Practice's use of the Trademark will belong and inure solely to the benefit of Manager. Practice covenants and agrees that it will not:
  • (a) take any action or assist any third party in any action to contest or impair Manager's ownership rights or dilute, tarnish, or infringe the Trademark;
    • (b) at any time, dispute or contest the right, title, or validity of the Trademark; or
  • (c) attempt to register or use any intellectual property, including any trademarks, service marks, or copyrights similar to the Trademark.
  • 1.03. Reservation of Rights Not Granted. Practice agrees that it has no rights in Manager's Trademark except those expressly granted under this Agreement. Any and all rights not granted by Manager under this Agreement are reserved by Manager.

Source: Item 23 — RECEIPTS (FDD pages 59–293)

What This Means (2024 FDD)

Based on the 2024 Franchise Disclosure Document, C3 Wellness Spa's Practice engages the Manager under a License Agreement, where the Manager grants the Practice a limited, nonexclusive, nontransferable license to use the Manager's Trademark "C3 Wellness." This license is specifically for the operation of the Practice's business, including using the "C3 Wellness" name at the Practice's physical address. In return, the Practice agrees to market its business solely under the Manager's Trademark during the term of the agreement, unless otherwise required by law.

The agreement emphasizes that all rights to the Trademark and associated goodwill remain the exclusive property of the Manager and/or its licensor. The Practice's use of the Trademark will not create any ownership rights for the Practice, and any goodwill generated through the Practice's use of the Trademark will benefit the Manager exclusively. The Practice is also obligated to properly use the "®" or "™" symbols to indicate registered or unregistered marks, respectively, and to promptly correct any incorrect or unacceptable use of these symbols upon notice from the Manager.

Upon termination of the License Agreement, the Practice must cease using "C3 Wellness" in its assumed trade name and refrain from using the Trademark in any manner. Within 30 days of termination, the Practice must terminate all assumed name certificates filed with the Secretary of State and applicable counties and remove all uses of and references to the Manager's Trademark from the premises. This ensures that the C3 Wellness Spa brand remains protected and under the control of the Manager, even after the agreement ends.

Disclaimer: This information is extracted from the 2024 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.