Does the Franchisor control the use of Marks associated with Cilantro Taco Grill?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Through the expenditure of considerable time, effort and money, Franchisor has developed and established unique fast-casual restaurant businesses featuring authentic Mexican food, such as tacos, burritos, salads, and tortas under the Cilantro Taco Grill trademarks, and using Franchisor's confidential operations manual ("Manual") of business practices and policies, and Franchisor's distinctive, décor, fixtures and furnishings, operations methods, sales techniques, inventory, procedures for management control and training, assistance, advertising, and promotional programs, all of which may be changed, improved or further developed by Franchisor at any time (taken together herein the "System").
The System is identified by certain trade names, service marks, trademarks, logos, emblems and indicia of origin, including but not limited to the Cilantro Taco Grillservice mark, as set forth in Attachment 1, and such other trade names, service marks, and trademarks as are now designated and may hereafter be designated or substituted by Franchisor for use in connection with the System (the "Marks").
Franchisor continues to develop, use, and control the use of such Marks in order to identify for the public the source of services and products marketed under the Marks and the System and to represent the System's high standards of quality, appearance, and service.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the franchisor maintains control over the use of its trademarks and service marks, referred to as the "Marks." The franchisor develops, uses, and controls these Marks to identify the source of its services and products, ensuring they represent the System's standards for quality, appearance, and service.
The franchise agreement grants franchisees the right to operate a Cilantro Taco Grill outlet using the Marks and System, but only in strict accordance with the franchisor's standards and specifications. Franchisees must operate and advertise under the name "Cilantro Taco Grill" unless otherwise authorized and must identify themselves as independent franchisees in conjunction with any use of the intellectual property. Franchisees cannot use the Marks to incur any obligation on behalf of the franchisor.
Cilantro Taco Grill also reserves the right to substitute different Marks if it deems beneficial to the System, and will not be liable for any expenses, losses, or damages sustained by the franchisee as a result of these changes. Upon termination or expiration of the franchise agreement, the franchisee must immediately cease using the Marks and any related intellectual property, and take necessary actions to cancel any assumed name registrations containing the Marks. This ensures that the franchisor retains exclusive control over its brand identity and protects its goodwill.