Under the Cinch I.T. franchise agreement, what is the franchisee licensed to utilize?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
e representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows:
1. INCORPORATION OF RECITALS
The Recitals are incorporated herein by reference.
2. GRANT OF FRANCHISE
On the terms and conditions of this Agreement, We hereby grant to You the right to establish and operate a CINCH I.T. franchise (the "Franchise" or "Franchised Business") and to use the Licensed Rights associated with the Franchised Business and developed by Us. The Franchise is granted for the area set out in the attached Addendum A to this Agreement, entitled Franchisee's Designated Territory.
The Franchised Business described in this Section will service an area more particularly described in Section 4 of this Agreement.
3. GRANT OF LICENSED RIGHTS
(a) Subject to the terms and conditions of this Agreement, We grant to You the right to use the Licensed Rights in the establishment and operation of the Franchised Business. You acknowledge
Our sole and exclusive right to use CINCH I.T. Marks in connection with the products and services to which they are or may be applied by Us, and represent, warrant and agree that, neither during the term of this Agreement nor after its expiration or other termination, shall You directly or indirectly contest, or aid in contesting, the validity or ownership of the Licensed Rights, or take any action whatsoever in derogation of the rights claimed by Us in this Agreement.
- (b) Nothing contained in this Agreement shall be construed to vest in You any right, title or interest in or to the Licensed Rights, the goodwill now or hereafter associated with such rights, other than the rights and license expressly granted to You in this Agreement. Any and all goodwill associated with or identified by the Licensed Rights shall inure directly and exclusively to Our benefit and is Our property.
- (c) No advertising or other use of the CINCH I.T. Marks by You shall contain any statement or material which, in Our sole judgment, We consider to be in bad taste or inconsistent with CINCH I.T.'s public image, or tends to bring disparagement, ridicule or scorn upon Us or Our affiliates or predecessors or successors or the CINCH I.T. Marks, or diminish Our associated goodwill. You shall not make any use of the CINCH I.T.
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 is granted the right to establish and operate a Cinch I.T. franchise and to use the Licensed Rights associated with the Franchised Business and developed by Cinch I.T. The franchise is specifically granted for the area outlined in Addendum A of the Franchise Agreement, which is entitled "Franchisee's Designated Territory."
The Licensed Rights must be used strictly in accordance with the terms of the Franchise Agreement. Any unauthorized use of these rights is considered an infringement of Cinch I.T.'s rights and a material breach of the agreement. Franchisees do not acquire any right, title, or interest to the Licensed Rights beyond what is expressly provided in the agreement, and all goodwill associated with the Licensed Rights accrues exclusively to the benefit of Cinch I.T.
Cinch I.T. retains the right to operate Cinch I.T. businesses and use the Licensed Rights in any territory outside of the franchisee's Designated Territory, and to license others to do so. They also reserve the right 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 as Licensed Rights for use with similar or different franchise systems in any territory, without granting the franchisee any rights to them. Franchisees are solely responsible for operating their franchised business in full compliance with all System Standards, which include mandatory specifications, standards, operating procedures, and rules prescribed by Cinch I.T.