Who accrues the rights and goodwill from the use of the Cinch I.T. Marks?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
rectly or indirectly contest our right to our Marks, trade secrets or business techniques that are part of our business.
Your Franchise Agreement provides that any use of the Marks that is not authorized is an infringement. You may not use the Marks as part of your corporate or other legal name, website address, e-mail address, domain name or other identification in any print, electronic or other medium, or with any prefix, suffix or other modifying word, term, symbol or design without our consent. All rights in, and goodwill from, the use of the Marks accrue solely to us.
You must display in a conspicuous location in or upon the Franchised Business, or in a manner that we specify, a sign containing the following notice or an alternative notice that we specify: "This business is owned and operated independently by [name of franchisee] who is an authorized licensed user of the trademark "CINCH I.T.", which is a registered trademark owned by Cinch Franchise, LLC." You must include this notice or other similar language that we specify on all forms, advertising, promotional materials, business cards, receipts, letterhead, contracts, stationery, and other written materials we designate.
We are not aware of any prior superior rights or infringing uses that would materially affect your use of the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 43–44)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, Cinch Franchise, LLC retains all rights and goodwill associated with the use of its trademarks. This means that while franchisees are granted the right to use the Cinch I.T. marks to operate their franchised business, the value and reputation generated through the use of these marks ultimately benefit the franchisor, Cinch Franchise, LLC.
This is a standard practice in franchising, as the franchisor owns the brand and is responsible for maintaining its integrity and consistency across all franchise locations. The FDD specifies that unauthorized use of the marks constitutes infringement, and franchisees cannot use the marks as part of their corporate name, website, or email address without consent. This control ensures that Cinch I.T. can manage its brand image and protect its trademarks.
The franchisee is required to display a notice stating that the business is independently owned but is an authorized user of the Cinch I.T. trademark. Additionally, because telephone listings will be associated with the Marks, Cinch I.T. will own all rights to the telephone listings, and all goodwill generated from the use of the telephone listings will inure to their benefit. This further emphasizes that all benefits from the use of the Cinch I.T. name accrue to the franchisor, not the franchisee.