What constitutes misuse of Licensed Rights for a Cinch I.T. franchise?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) You will use the Licensed Rights strictly in accordance with the terms of this Agreement. Any unauthorized use of the Licensed Rights is and shall be deemed an infringement of Our rights and a material breach of this Agreement.
- (b) Except as expressly provided by this Agreement, You shall not acquire any right, title or interest to the Licensed Rights. Any and all goodwill associated with the Licensed Rights shall accrue exclusively to Our benefit. Upon the expiration or termination of this Agreement and any renewals, no monetary amount shall be attributable to goodwill associated with Your use of the Licensed Rights.
- (c) Except as provided for in Section 4 of this Agreement above, the Franchised Business and Licensed Rights granted under this Agreement are non-exclusive, and We retain the right, in Our sole discretion:
- (i) To continue to operate CINCH I.T. businesses and to use the Licensed Rights in any territory outside of Your Designated Territory, and to license others to do so; and,
- (ii) To develop, use and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignias or copyrights not specifically designated by Us as Licensed Rights, for use with similar or different franchise systems in any territory, on such terms and conditions as We may deem advisable, and without granting You any rights.
- (d) You alone are responsible for operating the Franchised Business in full compliance with all System Standards, as modified from time to time. System Standards mean mandatory specifications, standards, operating procedures, and rules that We periodically prescribe for the development and
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, a franchisee must use the Licensed Rights strictly in accordance with the terms of the Franchise Agreement. Any unauthorized use of these rights is considered an infringement and a material breach of the agreement.
The Cinch I.T. franchisee acknowledges that they do not acquire any right, title, or interest to the Licensed Rights beyond what is expressly provided in the agreement. All goodwill associated with the Licensed Rights accrues exclusively to the benefit of Cinch I.T.. Upon expiration or termination of the agreement, no monetary amount will be attributable to the franchisee's use of the Licensed Rights.
Cinch I.T. retains the right to operate Cinch I.T. businesses and use the Licensed Rights outside the franchisee's designated territory, and to license others to do so. They can also develop, use, and franchise rights to any trade names, trademarks, or copyrights not specifically designated as Licensed Rights for similar or different franchise systems.
The franchisee is solely responsible for operating the franchised business in full compliance with all System Standards, which include mandatory specifications, standards, operating procedures, and rules prescribed by Cinch I.T. These System Standards apply uniformly to all similarly situated Cinch I.T. franchised businesses and may regulate any aspect of the operation and maintenance of the business.