Is a Chocolate Bash franchisee allowed to use the Marks on employment documents?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.1 Authorized Marks. Franchisee shall use no trademarks, service marks or logos in connection with the Business other than the Marks. Franchisee shall use all Marks specified by CB Franchising, and only in the manner as CB Franchising may require. Franchisee has no rights in the Marks other than the right to use them in the operation of the Business in compliance with this Agreement. All use of the Marks by Franchisee and any goodwill associated with the Marks, including any goodwill arising due to Franchisee's operation of the Business, will inure to the exclusive benefit of CB Franchising.
- 12.2 Change of Marks. CB Franchising may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after CB Franchising makes any such change, Franchisee must comply with the change, at Franchisee's expense.
12.3 Infringement.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, a franchisee's use of the Marks is explicitly controlled by the franchise agreement. The agreement states that the franchisee can only use the Marks as specified by Chocolate Bash. The Marks are defined as the trade name and logo, along with any other trademarks, service marks, and logos that Chocolate Bash designates for use in the business.
The agreement grants the franchisee the right to use the Marks only in the operation of the Chocolate Bash business, implying that any other use must be approved by Chocolate Bash. All goodwill associated with the Marks, including any goodwill arising from the franchisee's operation, accrues exclusively to the benefit of Chocolate Bash.
Therefore, while the FDD does not explicitly forbid using the Marks on employment documents, it does state that franchisees shall use the Marks in the manner that Chocolate Bash requires. A prospective franchisee should seek clarification from Chocolate Bash on whether using the Marks on employment documents is permitted and under what conditions.