Can Cd One Price Cleaners sell its Proprietary Marks without restriction?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
7.2.4 Any and all goodwill arising from Franchisee's use of the Proprietary Marks shall inure solely and exclusively to the benefit of Franchisor and its affiliates;
7.2.5 Except as specified in Sections 1.3 and 1.4, Franchisor and its affiliates shall have and retain the rights, among others: (a) to use the Proprietary Marks themselves in connection with selling products and services; (b) to grant other licenses for the Proprietary Marks; and (c) to develop and establish other systems using the Proprietary Marks, similar proprietary marks, or any other proprietary marks and to grant licenses or franchises thereto without providing any rights therein to Franchisee; and
7.2.6 Franchisor reserves the right from time to time to add or substitute different marks for use in identifying the Store and/or other CD Stores if the Proprietary Marks no longer can be used, or if Franchisor, in its sole judgment, determines that addition or substitution of different marks will be beneficial to Franchisor.
In such circumstances, the use of the additional or substituted marks shall be governed by the terms of this Agreement, and Franchisor shall not compensate Franchisee for such addition or
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, Cd One Price Cleaners retains significant rights regarding the Proprietary Marks. Specifically, Cd One Price Cleaners has the right to use the Proprietary Marks themselves in connection with selling products and services, grant other licenses for the Proprietary Marks, and develop and establish other systems using the Proprietary Marks, similar proprietary marks, or any other proprietary marks and to grant licenses or franchises thereto without providing any rights therein to the franchisee. This means that Cd One Price Cleaners can leverage its brand recognition and trademarks to expand its business through various channels without necessarily including existing franchisees.
Cd One Price Cleaners also reserves the right to modify its marks. The document states that Cd One Price Cleaners can add or substitute different marks for use in identifying the Store and/or other CD Stores if the Proprietary Marks no longer can be used, or if Cd One Price Cleaners, in its sole judgment, determines that addition or substitution of different marks will be beneficial to Cd One Price Cleaners. The franchisee is responsible for implementing any such substitution at their own expense and will not be compensated by Cd One Price Cleaners for the substitution or the costs associated with it.
Furthermore, the goodwill associated with the Proprietary Marks inures solely to the benefit of Cd One Price Cleaners and its affiliates. This reinforces that the brand equity built through the franchisee's efforts ultimately benefits Cd One Price Cleaners. These stipulations ensure that Cd One Price Cleaners maintains control over its brand identity and can adapt its trademarks and business systems as it sees fit, which is a fairly standard practice in franchising to maintain brand consistency and explore new market opportunities.