Does Cilantro Taco Grill hold any patents material to the franchise?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
We expect and intend to work with our affiliate, CTG IP LLC to file all required affidavits with the USPTO for the Principal Marks above, as and when they become due and have filed all required affidavits to date. Presently, there are no agreements in effect that significantly limit our rights to use or license the use of the Principal Marks listed in this Item in a manner material to the franchise – other than our license agreement with CTG IP LLC. Our license agreement with CTG IP LLC ("Licensor") gives us broad rights to use the Marks in connection with the operation of the Cilantro Taco Grill franchise System, and to sublicense to franchisees the right to use the Marks, in strict accordance with our Franchise Agreement. The term of our license agreement is for 5 years, commencing May 23, 2023, and will automatically renew every 5 years. The license agreement will terminate only upon (i) our bankruptcy or (ii) our election to terminate by providing 180 days' prior notice to the Licensor. A termination of the license agreement will have no effect on sublicenses granted to franchisees prior to the date of termination. We are not aware of any infringing use of our primary Principal Marks that could materially affect your use.
You must notify us immediately when you learn about an infringement of or challenge to your use of the Principal Marks or other Marks. Our affiliate and we will take any action we think appropriate and, if you have given us timely notice and are in full compliance with the Franchise Agreement, we will indemnify you for all expenses and damages arising from any claim challenging your authorized use of the Principal Marks or other Marks. Our affiliate and we have the right to control any administrative proceedings or litigation involving the Principal Marks or other Marks licensed by us to you. You must cooperate fully with our affiliate and us in defending and/or settling the litigation.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Cilantro Taco Grill does not explicitly state whether the company owns any patents material to the franchise. However, the document does address intellectual property, trademarks, and the franchisee's obligations regarding their use.
Item 13 discusses trademarks, indicating that Cilantro Taco Grill works with its affiliate, CTG IP LLC, to file required affidavits with the USPTO for the Principal Marks. It also states that there are no agreements that significantly limit Cilantro Taco Grill's rights to use or license the Principal Marks, other than their license agreement with CTG IP LLC. Franchisees are required to notify Cilantro Taco Grill immediately if they learn of any infringement or challenges to the use of the Principal Marks.
Item 23 outlines the franchisee's obligations upon termination or expiration of the agreement, including ceasing to use the Marks, logos, copyrighted material, or other intellectual property associated with Cilantro Taco Grill. This suggests that intellectual property is important to the Cilantro Taco Grill system, but the FDD does not specify whether any of this intellectual property is protected by patents.
Prospective franchisees should inquire with Cilantro Taco Grill about any patents related to the franchise system, including those covering equipment, processes, or recipes. Understanding the scope and strength of the franchisor's intellectual property protection is a crucial part of evaluating the franchise opportunity.