What use of the Proprietary Marks must a Carls franchisee discontinue upon termination or expiration?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- E. Franchisee immediately shall discontinue all use of the Proprietary Marks in connection with the Franchised Restaurant and of any and all items bearing the Proprietary Marks; remove the Proprietary Marks from the Franchised Restaurant and from clothing, signs, materials, motor vehicles and other items owned or used by Franchisee in the operation of the Franchised Restaurant (unless CJR directs Franchisee to temporarily refrain from doing so while CJR determines if it will exercise its option under Section 23); cancel all advertising for the Franchised Restaurant that contains the Proprietary Marks (including telephone directory listings); and take such action as may be necessary to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, the franchisee must immediately cease all use of the Proprietary Marks in connection with the Franchised Restaurant. This includes discontinuing the use of the Proprietary Marks on any items bearing the marks.
Specifically, the franchisee is required to remove the Proprietary Marks from the Franchised Restaurant itself, as well as from clothing, signs, materials, motor vehicles, and any other items used in the operation of the restaurant. The franchisee must also cancel all advertising for the Franchised Restaurant that contains the Proprietary Marks, including telephone directory listings.
Additionally, the franchisee must take any necessary actions to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks. This ensures that the franchisee no longer represents themselves as being associated with the Carls brand after the agreement has ended, protecting Carls's brand identity and preventing potential confusion among customers.