Is the Canine Dimensions franchisee's license to use the marks exclusive?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3.2 As between the parties, Franchisor has the exclusive right and interest in and to the Marks and the goodwill associated with and symbolized by them. Franchisee's use of the Marks pursuant to this Agreement does not give Franchisee any ownership or other interest in or to the Marks, except the limited, non-exclusive license granted by this Agreement. Any and all goodwill arising from Franchisee's use of the Marks in its franchised operation under the System shall inure solely and exclusively to Franchisor's benefit, and upon expiration or termination of this Agreement and the license herein granted, no monetary amount shall be assigned as attributable to any goodwill associated with Franchisee's use of the System or the Marks.
- 7.3.3 The right license to use the Marks granted to Franchisee is non-exclusive, and that Franchisor has and retains the following rights, among others:
- (a) To use the Marks itself in connection with selling products and services;
- (b) To grant other licenses for the Marks in addition to those licenses already granted to existing franchisees;
- (c) To develop and establish other systems using the same or similar Marks, or any other Marks, and to grant licenses or franchises thereto without providing any rights in them to Franchisee.
- 7.3.4 Franchisor reserves the right to substitute different Marks for use in identifying the System and the businesses operating thereunder if Franchisor's currently owned Marks no longer can be used, or if Franchisor, in its sole discretion, determines that substitution of different Marks will be beneficial to the System. In the event of a change in or substitution of any Mark, Franchisor shall not be obligated to reimburse Franchisee for any costs incurred by Franchisee related to such change or substitution. Franchisee waives any claim arising from or relating to any Mark change, modification or substitution. Franchisor will not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any Mark addition, modification, substitution or discontinuation, except as provided in this Agreement. Franchisee covenants not to commence or joint in any litigation or other proceeding against Franchisor for any of these expenses, losses or damages.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the franchise agreement grants a non-exclusive license to use their marks. Specifically, Canine Dimensions retains the right to use the marks themselves for selling products and services, grant other licenses for the marks to additional franchisees, and develop other systems using the same or similar marks.
This means that while a franchisee has the right to use the Canine Dimensions trademarks and service marks to operate their franchise, Canine Dimensions is not restricted from using those same marks or allowing others to use them. This is a fairly standard practice in franchising, as the franchisor needs to maintain control over its brand and have the ability to expand its network as it sees fit.
The franchisee's rights to use the marks are limited to what is authorized in the franchise agreement, and any unauthorized use is considered infringement. The franchisee cannot use the marks to incur any obligations on behalf of Canine Dimensions, nor can they use the marks as part of their business entity name. This protects Canine Dimensions from potential liabilities and ensures consistent branding across all franchise locations.
Canine Dimensions also has the right to change or substitute the marks used in identifying the system if the current marks can no longer be used or if Canine Dimensions believes a substitution would benefit the system. Franchisees are not entitled to reimbursement for any costs incurred due to such changes and waive any claims related to mark changes. This clause highlights the importance of the franchisor's control over the brand and the franchisee's obligation to adapt to changes made by the franchisor.