Is Chocolate Fish Coffee obligated to protect its copyrights?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
y or no-contest to, or is convicted of a felony; or
- (xiv) Franchisee or any Owner is accused by any governmental authority or third party of any act, or if Franchisee or any Owner commits any act or series of acts, that in Chocolate Fish Franchising's opinion is reasonably likely to materially and unfavorably affect the Chocolate Fish Coffee brand.
- 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 Chocolate Fish Franchising based on the operation of the Business through the effective date of termination or expiration;
- (ii) return to Chocolate Fish Franchising all copies of the Manual, Confidential Information and any and all other materials provided by Chocolate Fish 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;
- (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Chocolate Fish Franchising or any new franchisee as may be directed by Chocolate Fish Franchising, and Franchisee hereby irrevocably appoints Chocolate Fish Franchising, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest;
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 31–32)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Chocolate Fish Coffee does not explicitly state that Chocolate Fish Franchising is obligated to protect its copyrights. However, the document does address the use and ownership of trademarks and service marks (referred to as "Marks") within the Chocolate Fish Coffee system.
According to the franchise agreement, the franchisee is only authorized to use the Marks specified by Chocolate Fish Franchising and in the manner they require. The franchisee gains no rights to the Marks beyond this authorized use for operating their Chocolate Fish Coffee business. All goodwill associated with the Marks, including any arising from the franchisee's operation, exclusively benefits Chocolate Fish Franchising. This suggests that Chocolate Fish Franchising retains control and ownership of its Marks.
Furthermore, Chocolate Fish Franchising has the right to add, modify, or discontinue any Marks used within the system, and franchisees must comply with these changes at their own expense. Upon termination or expiration of the franchise agreement, the franchisee must return all materials containing any Marks, copyrights, and other proprietary items to Chocolate Fish Franchising. While these clauses don't explicitly mandate Chocolate Fish Coffee to protect its copyrights, they strongly imply that Chocolate Fish Franchising owns and controls these assets and takes measures to maintain that ownership. A prospective franchisee should seek clarification from Chocolate Fish Coffee regarding their specific policies and actions related to copyright protection to fully understand the franchisor's responsibilities and actions in this area.