Under what conditions can a C3 Wellness Spa franchisee use the Licensed Marks?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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ITEM 13 TRADEMARKS
Under the terms of the Franchise Agreement, you will be granted a license to use the "C3 Wellness" trademark and those other marks. Our affiliate Aryes IP LLC is the owner of the Licensed Marks and has granted to us a license with an initial 20 year term and with automatic renewal thereafter to use the Licensed Marks and to license our franchisees to use the Licensed Marks. We reserve the right to supplement and modify the marks that you may or may not use in the operations of your Spa Location Franchise. You may only use the Licensed Marks in the manner authorized by us in writing and pursuant to the terms of the Franchise Agreement. You may not use the Licensed Marks in the name of the Corporate Entity that you may establish to own and operate your Spa Location Franchise.
Under the terms of the Franchise Agreement, you will be granted a license to use the "C3 Wellness" trademark and those other marks that we designate. Our affiliate Aryes IP LLC is the owner of the Licensed Marks and has granted to us a license with an initial 20-year term and with automatic renewal thereafter use the Licensed Marks and to license our franchisees to use the Licensed Marks. Although the License Agreement may be terminated as a result of a breach of the License Agreement, in the event of any termination of the License Agreement, our franchisees will continue to maintain the right to use the Marks pursuant to the terms of their Franchise Agreement.
We reserve the right to supplement and modify the. Marks that you may or may not use in connection with the operations of your Franchised Business. You may only use the Licensed Marks as authorized by us in writing and under the terms of your Franchise Agreement. You may not use the Licensed Marks in the name of any Corporate Entity that you establish.
Principal Trademarks Registered with the United States Patent and Trademark Office
The principal trademarks identified in the schedule below are a part of the Licensed Marks, our System, are registered with the United States Patent and Trademark Office (the "USPTO") and, unless otherwise designated by us, will be used by you in the operations of the Franchised Business. As to these marks all required affidavits have been filed with the USPTO.
| Mark | USPTO Registration Number | Registration Type | Registration Date |
|---|---|---|---|
| C3 Wellness | 6840804 | Principal | September 6, 2022 |
| (word mark) | |||
| 7035862 | Principal | April 25, 2023 | |
| (composite mark) |
As to our principal trademarks there are no currently effective material determinations by the USPTO, the Trademark Trial and Appeal Board, any court, or the trademark administrator of any state. There are no pending infringement, opposition or cancellation proceedings and no pending litigation involving our
principal marks. We know of no superior rights or infringing uses that could materially affect your use of our principal marks or other related rights in any state.
You are required to provide us with written notice of any claims that you may become aware of respecting the Licensed Marks including, but not limited to, your use of the Licensed Marks and/or a claim associated with a third party's use of a trademark that is identical or confusingly similar to the Licensed Marks that we have licensed to you.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, franchisees are granted a license to use the "C3 Wellness" trademark and other designated marks under the terms of the Franchise Agreement. However, this use is explicitly limited to the manner authorized in writing by C3 Wellness Spa and must comply with the Franchise Agreement's terms. Franchisees cannot use the Licensed Marks in the name of any corporate entity they establish to operate their C3 Wellness Spa location.
C3 Wellness Spa retains the right to supplement and modify the marks that franchisees can use in their franchised business operations. The FDD specifies that C3 Wellness Spa will protect the franchisee's right to use the Licensed Marks and defend against infringement claims, provided the franchisee's use adheres to the Franchise Agreement, the manuals, and the franchisor's instructions. Franchisees must also notify C3 Wellness Spa of any claims related to the Licensed Marks.
If a third party successfully claims superior rights to the Licensed Marks, C3 Wellness Spa may modify or replace the marks, and franchisees must then use the substituted or replacement marks designated by C3 Wellness Spa. In such cases, C3 Wellness Spa's sole obligation is to reimburse the franchisee for direct, out-of-pocket costs incurred in complying with these changes, such as alterations to signage and replacement of marketing materials, provided these costs are documented to C3 Wellness Spa's satisfaction.
In summary, a C3 Wellness Spa franchisee's right to use the Licensed Marks is contingent upon strict adherence to the Franchise Agreement, written authorizations from the franchisor, and potential modifications dictated by C3 Wellness Spa in response to third-party claims. This arrangement is typical in franchising, where brand consistency and protection are paramount, but it also places the onus on the franchisee to stay updated with any changes to the approved usage of the Licensed Marks.