factual

What rights does the Canine Dimensions franchisor retain regarding the marks?

Canine_Dimensions Franchise · 2025 FDD

Answer from 2025 FDD Document

ary 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.

7.4 Cessation of Use after Expiration, Termination or Non-Renewal.

Upon the expiration, termination or non-renewal of this Agreement, Franchisee must immediately cease using the Marks, color combinations, designs, symbols or slogans; and Franchisor may require Franchisee to execute such documents and take such action as may be necessary to evidence this fact. After the effective date of expiration, termination or non-renewal, Franchisee will not represent or imply that it is associated with Franchisor. To this end, Franchisee irrevocably appoints Franchisor or its nominee to be Franchisee's attorney-in-fact to execute on Franchisee's behalf any document or perform any legal act necessary to protect the Marks from unauthorized use.

Source: Item 22 — CONTRACTS (FDD page 36)

What This Means (2025 FDD)

According to Canine Dimensions' 2025 Franchise Disclosure Document, the franchisor retains several rights regarding the marks used in the franchise system. Canine Dimensions has the right to use the marks themselves in connection with selling products and services, grant other licenses for the marks to additional franchisees, and develop and establish other systems using the same or similar marks without providing any rights to the franchisee. This means that while franchisees are granted a license to use the Canine Dimensions marks, the franchisor maintains control over their broader application and can expand their use beyond the individual franchise.

Canine Dimensions also reserves the right to substitute different marks for use in identifying the system if the current marks can no longer be used or if the franchisor determines that a substitution would benefit the system. In the event of such a change, the franchisee is responsible for any costs incurred and waives any claims arising from the mark change. This protects the franchisor from liability related to mark changes and ensures they can adapt the branding as needed.

Furthermore, the Canine Dimensions franchise agreement states that the franchisee acknowledges the franchisor's exclusive right and interest in the marks and the goodwill associated with them. The franchisee's use of the marks does not grant them any ownership interest, and all goodwill arising from the franchisee's use of the marks benefits the franchisor exclusively. This reinforces that the franchisee's right to use the marks is a limited, non-exclusive license, and the franchisor retains ultimate control and ownership.

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.