What is the significance of the Proprietary Marks for Cd One Price Cleaners?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Franchisor identifies CD Stores by means of certain trade names, service marks, trademarks, logos, emblems and indicia of origin ("marks") as are now or may hereinafter be designated by Franchisor. The marks to be utilized in connection with the concept to be licensed to Franchisee pursuant to this Agreement, including "CD One Price Cleaners®," as Franchisor may add to, amend and replace them from time to time, are hereinafter referred to as "Proprietary Marks."
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
substitution or the costs to Franchisee associated therewith. Franchisee shall implement promptly any such substitution at Franchisee's expense.
- 14.2 Cessation of Use of Confidential Information and Proprietary Marks. Franchisee shall immediately and permanently cease to use, in any manner whatsoever, (a) any products or services which incorporate trade secrets or any confidential methods, procedures or techniques associated with Franchisor; and (b) the Proprietary Marks, any trademark, service mark, trade name or symbol that is confusingly similar to any Proprietary Mark, and all other proprietary marks and distinctive forms, slogans, signs, symbols, and devices associated with Franchisor and/or CD Stores.
- 14.3 Assumed Name Registration and Telephone Numbers. Franchisee shall immediately take such action as may be necessary to cancel any assumed name or equivalent registration which contains any of the Proprietary Marks. Franchisee also shall immediately notify the telephone company and all telep
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the Proprietary Marks, including "CD One Price Cleaners®," are crucial for identifying and distinguishing CD Stores. These marks represent the brand's identity and are used in connection with the concept licensed to the franchisee. The franchisor retains the right to add, amend, and replace these marks over time. Franchisees are granted the right to operate under these marks, but this right is contingent upon adhering to the franchise agreement.
The FDD emphasizes that all goodwill arising from the franchisee's use of the Proprietary Marks benefits the franchisor and its affiliates exclusively. Franchisees cannot contest the validity or ownership of the Proprietary Marks and acknowledge that their use of these marks does not grant them any ownership interest beyond the license provided by the agreement. Cd One Price Cleaners retains the right to use the Proprietary Marks themselves, grant licenses to others, and develop other systems using similar marks without providing any rights to the franchisee.
Cd One Price Cleaners also reserves the right to modify or substitute different marks if the current ones become unusable or if the franchisor believes a change would be beneficial. Franchisees are obligated to implement any such changes at their own expense. Upon termination or expiration of the franchise agreement, the franchisee must immediately cease using the Proprietary Marks and any confusingly similar marks or symbols associated with Cd One Price Cleaners. They must also cancel any assumed name registrations containing the Proprietary Marks, ensuring a clean break from the brand identity.