Does Care Plus Medical Ucc know of any copyright infringement that could materially affect franchisees?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
ARTICLE 12. MARKS
- 12.1 Authorized Marks. Franchisee shall use no trademarks, service marks or logos in connection with the Business other than the Marks. Franchisee shall use all Marks specified by Care Plus Medical UCC, and only in the manner as Care Plus Medical UCC may require. Franchisee has no rights in the Marks other than the right to use them in the operation of the Business in compliance with this Agreement. All use of the Marks by Franchisee and any goodwill associated with the Marks, including any goodwill arising due to Franchisee's operation of the Business, will inure to the exclusive benefit of Care Plus Medical UCC.
- 12.2 Change of Marks. Care Plus Medical UCC may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after Care Plus Medical UCC makes any such change, Franchisee must comply with the change, at Franchisee's expense.
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Care Plus Medical UCC shall defend Franchisee (at Care Plus Medical UCC's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Care Plus Medical UCC will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (b) Infringement by Third Party. Franchisee shall promptly notify Care Plus Medical UCC if Franchisee becomes aware of any possible infringement of a Mark by a third party. Care Plus Medical UCC may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control. Care Plus Medical UCC shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 31–32)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the provided excerpts do not contain information regarding any specific instances of copyright infringement known to Care Plus Medical Ucc that could materially affect its franchisees. However, the FDD does address the use and protection of the brand's marks.
The agreement stipulates that franchisees must only use trademarks, service marks, and logos (the Marks) authorized by Care Plus Medical Ucc and in the manner it requires. Franchisees gain no rights to these Marks beyond their use in operating the business as per the franchise agreement; all goodwill associated with the Marks benefits Care Plus Medical Ucc exclusively. Care Plus Medical Ucc retains the right to modify or discontinue any Marks, and franchisees must comply with these changes at their own expense.
Furthermore, the franchise agreement outlines procedures related to infringement. Care Plus Medical Ucc will defend and indemnify franchisees against third-party actions alleging infringement due to the franchisee's authorized use of the Marks. Franchisees are required to promptly notify Care Plus Medical Ucc of any potential infringement of the Marks by third parties, and Care Plus Medical Ucc has the sole discretion to pursue claims against the infringing party.
Since the excerpts do not explicitly state whether Care Plus Medical Ucc is aware of any current copyright infringements, it would be prudent for a prospective franchisee to directly ask Care Plus Medical Ucc about any potential or ongoing disputes related to copyright or trademark issues during their due diligence. This inquiry should clarify any existing risks and the potential impact on a franchisee's business operations.