During the term of the Card My Yard Agreement, what right does the franchisee have regarding the use of the Marks?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
X. MARKS
- A. Your Right to Use the Marks. We grant you the right to use the Marks during the term of this Agreement in accordance with this Agreement and our standards and specifications.
- B. Your Agreements Regarding the Marks. You expressly acknowledge that:
- (1) As between us and you, we are the owner of all right, title and interest in and to the Marks and the goodwill associated with and symbolized by them.
- (2) Neither you nor any of your Owners will take any action that would prejudice or interfere with our rights or those of our Affiliates in and to the Marks. Nothing in this Agreement shall give you any right, title, or interest in or to any of the Marks, except the right to use the Marks in accordance with the terms and conditions of this Agreement.
- (3) Any and all goodwill arising from your use of the Marks will inure solely and exclusively to our benefit and to the benefit of our Affiliates, and upon expiration or termination of this Agreement, no monetary amount shall be attributable to any goodwill associated with your use of the Marks.
- (4) You agree notto contest, or assist others to contest,the validity of, or our or our Affiliates'
interest in the Marks.
- (5) Any unauthorized use of the Marks will constitute an infringement of our or our Affiliates' rightsin the Marks and a material event of default under this Agreement. You agree to provide us with all assignments, affidavits, documents, information and assistance related to the Marks that we or our Affiliates reasonably request, including all such instruments necessary to register, maintain, enforce and fully vest the rights of us or our Affiliates in the Marks.
- (6) We have the right to substitute different trade names, trademarks, service marks, logos and commercialsymbols for the current Marks to use in identifying theSystem and the Card My Yard businesses operating under theSystem if the current Marks no longer can be used, or if we,in oursole discretion, determine that substitution of different marks will be beneficial to the System. If we do so, you agree, at your expense, to discontinue or modify your use of any of the Marks or to use one or more additional or substitute marks.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees are granted the right to use the brand's Marks during the term of the Franchise Agreement. This use must align with the agreement's stipulations and Card My Yard's standards and specifications. However, franchisees acknowledge that Card My Yard owns all rights, titles, and interests in the Marks and associated goodwill. Franchisees cannot take actions that could negatively impact Card My Yard's rights to the Marks.
This agreement specifies that franchisees do not gain any ownership or title to the Marks, only the right to use them as outlined in the agreement. All goodwill generated from the franchisee's use of the Marks benefits Card My Yard exclusively. Upon termination or expiration of the Franchise Agreement, no monetary value is assigned to the goodwill associated with the franchisee's use of the Marks. Franchisees also agree not to challenge the validity of Card My Yard's interest in the Marks.
Unauthorized use of the Marks by the franchisee constitutes an infringement of Card My Yard's rights and a material breach of the Franchise Agreement. Card My Yard retains the right to change the Marks used in the system, and franchisees are obligated to implement these changes at their own expense. This includes discontinuing the use of old marks or adopting new or substitute marks. Franchisees must also obtain written approval from Card My Yard before registering any domain name that uses or creates any association with the Marks, and the domain name must be registered in Card My Yard's name and licensed to the franchisee.