What happens to a Casiola franchisee's rights to use Digital Media upon termination of the franchise agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
has been advised of the possibility of such damages, or for any claim by any other party including the software manufacturer. The foregoing limitations of liability are intended to apply without regard to whether other provisions of the Agreement have been breached or proven ineffective.
3.G. DIGITAL MEDIA, SYSTEM WEBSITE AND TELEPHONE NUMBERS
As between Franchisor and Franchisee, Franchisor is the absolute owner of the Digital Media. Franchisee shall not utilize, access or open accounts regarding or related to Digital Media unless expressly approved by Franchisor in writing which approval Franchisor may withhold, condition, limit, modify, or withdraw as determined by Franchisor in Franchisor's Reasonable Business Judgment and which approval, if given, shall be limited to the marketing and promotion of the Franchised Business in accordance with Franchisor's standards and specifications. Upon expiration or termination of this Agreement for any reason, all prior authorizations respecting Franchisee's right to use the Digital Media and/or otherwise as to any rights of Franchisee in or to the Digital Media shall be automatically terminate and, at Franchisor's election, the right to any and all accounts and/or sites (if any) associated with Digital Media utilized by Franchisee shall be transferred by Franchisee to Franchisor. Franchisee shall not utilize the Digital Media for purposes of or with the effect of libeling or disparaging another party and Franchisee shall not violate any copyrights or the legal rights of any other party or person. Franchisee is exclusively responsible for disparagement, libel and/or copyright or intellectual property infringement as to all information, data, materials, and Published Content issued, posted, and/or made available by Franchisee.
All Digital Media and/or Published Content, if permitted by Franchisor, must be approved by Franchisor prior to publication or use in any form. Digital Media and Published Content that is approved by Franchisor or that otherwise is acceptable to Franchisor as meeting Franchisor's standards shall, at Franchisor's discretion, be owned by Franchisor. As between Franchisor and Franchisee, any and all interest and right in or to the Digital Media and/or Published Content shall, at all times, be and is the exclusive property of Franchisor both during the Term of this Agreement and upon the expiration or termination of this Agreement. The System Website and all improvements and modifications made to the System Website, Digital Media, and Published Content is and shall be the exclusive property of Franchisor. During the Term of this Agreement and subject to Franchisee's compliance with this Agreement, the System Website shall include information related to the Franchised Business as shall be determined and designated by Franchisor in Franchisor's Reasonable Business Judgment. All rights in and to telephone numbers associated with the Franchised Business, shall, at Franchisor's election, be transferred to Franchisor.
Without limitation to the foregoing, Franchisee shall, upon the request of Franchisor, execute and deliver to Franchisor the Assignment of Telephone Numbers and Digital Media Accounts attached to this
Agreement as Exhibit 3. Upon the request of Franchisor, Franchisee shall execute, update, and/or re-execute the Assignment of Telephone Numbers and Digital Media Accounts agreement upon the request of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement for any reason, all prior authorizations respecting the franchisee's right to use the Digital Media automatically terminate. At Casiola's election, the rights to any and all accounts and/or sites (if any) associated with Digital Media utilized by the franchisee will be transferred by the franchisee to Casiola. The franchisee is not allowed to use the Digital Media to libel or disparage another party, violate copyrights, or infringe on the legal rights of any other party or person. The franchisee is exclusively responsible for disparagement, libel, and/or copyright or intellectual property infringement regarding all information, data, materials, and Published Content issued, posted, and/or made available by the franchisee.
Casiola retains ownership of the Digital Media, even if the franchisee was permitted to use it during the term of the agreement. Any interest or right in the Digital Media and/or Published Content is the exclusive property of Casiola both during and after the agreement. The System Website, along with all improvements and modifications, Digital Media, and Published Content, remains Casiola's exclusive property. Casiola may include information related to the Franchised Business on the System Website as it deems appropriate.
As part of the termination process, the franchisee must permanently cease accessing and discontinue using any and all digital media, intra-nets, cloud-based systems, and/or servers that store, maintain, and/or provide access to the Operations Manual, Confidential Information, and all other standards and specifications of Casiola. The franchisee must also take action to transfer, disconnect, and/or assign all telephone numbers, email addresses, and directory listings as directed by Casiola.