What constitutes an infringement of Chem Dry's rights to its Marks by the franchisee?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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- FRANCHISEE agrees not to operate or do business in any manner or for any purpose after the termination, expiration or cancellation of this Agreement, or otherwise than in accordance with the terms of this Agreement; or use any trade name, trade or service mark, or other commercial symbol that is now or may be hereafter associated with CDI or the System, or any confusingly similar trade name, trade or service mark, or other commercial symbol, in any manner or for any purpose; or use for any purpose any trade name, trade or service mark, or other commercial symbol that indicates or suggests a connection or association with CDI;
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- FRANCHISEE agrees to take the action required to cancel all fictitious or assumed name or equivalent registrations relating to FRANCHISEE'S use of any Mark;
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- FRANCHISEE agrees to deliver to CDI or to destroy all signs, brochures, advertising materials, forms, invoices and other materials containing any Mark or otherwise identifying or relating to a CHEM-DRY Business, including removing all signs, emblems, lettering and logos, or any other indicia of a CHEM-DRY Business, from all business vehicles not surrendered to a third party or purchased by CDI; and
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- FRANCHISEE agrees refer any telephone number associated in any way with any Mark or the Business to 1-800-CHEMDRY (1-800-243-6379) (or another number specified by CDI). FRANCHISEE further acknowledges that it shall be a direct violation of this Agreement for FRANCHISEE to cause or participate in the transfer of any such telephone numbers to any person or entity other than CDI. In the event that FRANCHISEE fails to comply with any of the foregoing, FRANCHISEE hereby acknowledges that CDI has the sole rights to and interest in all such telephone numbers and directory listings associated with any Marks. FRANCHISEE therefore authorizes CDI, and hereby appoints CDI and any officer of CDI as FRANCHISEE's attorney in fact, to direct any telephone companies and listing agencies to transfer any such telephone numbers to CDI, or to another person or party at its direction, and the telephone companies and all listing agencies may accept such direction or this Agreement as conclusive of the exclusive rights of CDI in such telephone numbers and directory listings and its authority to direct their transfer.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee infringes on Chem-Dry's rights to its marks if they continue to operate the Chem-Dry Business or use the Chem-Dry marks after the franchise agreement terminates. This includes using any trade name, trade or service mark, or other commercial symbol that suggests a connection with Chem-Dry.
Upon termination of the franchise agreement, the franchisee must take several actions to avoid infringing on Chem-Dry's marks. They must cancel any fictitious or assumed name registrations related to their use of any Chem-Dry mark. Additionally, the franchisee is required to deliver or destroy all materials containing any Chem-Dry mark, such as signs, brochures, advertising materials, forms, and invoices. This also includes removing any signs, emblems, lettering, or logos from business vehicles unless those vehicles are surrendered to a third party or purchased by Chem-Dry.
Furthermore, the franchisee must forward any telephone number associated with any Chem-Dry mark or the business to 1-800-CHEMDRY (1-800-243-6379) or another number specified by Chem-Dry. The franchisee is prohibited from transferring any such telephone numbers to any other person or entity. Chem-Dry retains the rights to these telephone numbers and directory listings, and is authorized to direct telephone companies and listing agencies to transfer the numbers. Failure to comply with these requirements constitutes a direct violation of the franchise agreement and an infringement of Chem-Dry's rights to its marks.