Is Chocolate Bash obligated to protect its copyrights?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
eement); or
- (xiii) Franchisee or any Owner is accused by any governmental authority or third party of any act that in CB Franchising's opinion is reasonably likely to materially and unfavorably affect the Chocolate Bash brand, or is charged with, pleads guilty to, or is convicted of a felony.
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
- (i) pay all amounts owed to CB Franchising based on the operation of the Business through the effective date of termination or expiration;
- (ii) return to CB Franchising all copies of the Manual, Confidential Information and any and all other materials provided by CB Franchising to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 28–29)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, while the document does not explicitly state that Chocolate Bash is obligated to protect its copyrights, it does address the use and ownership of trademarks and other proprietary items. Specifically, franchisees are required to return all materials containing any Marks, copyrights, and other proprietary items to Chocolate Bash upon termination or expiration of the franchise agreement. This suggests that Chocolate Bash retains ownership and control over these intellectual property assets.
Furthermore, the FDD states that franchisees must use only the trademarks, service marks, and logos (Marks) specified by Chocolate Bash and in the manner required by them. Franchisees have no rights in the Marks other than the right to use them in the operation of the business in compliance with the agreement. All goodwill associated with the Marks, including any goodwill arising due to the franchisee's operation of the business, will inure to the exclusive benefit of Chocolate Bash. This indicates that Chocolate Bash maintains control and benefits from the use of its Marks.
While the FDD excerpts provided do not explicitly state an obligation for Chocolate Bash to protect its copyrights, the provisions regarding the use and ownership of trademarks, copyrights, and proprietary items imply that Chocolate Bash has a vested interest in safeguarding these assets. A prospective franchisee should seek clarification from Chocolate Bash regarding their specific policies and actions related to protecting their intellectual property rights.