What constitutes infringement of the City Wide Marks by a City Wide franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ill also have the right to observe the manner in which Franchisee is rendering services and conducting Franchisee's activities and operations and to inspect equipment, merchandise, accessories, products, supplies, reports, forms and documents and related data for test of content and evaluation purposes to make certain that the Franchised Business is being operated in accordance with the quality control provisions and performance standards established by CITY WIDE.
- 5.6 Franchisee understands and agrees that any use of the Marks other than as expressly authorized by this Agreement, without CITY WIDE's prior written consent, is an infringement of CITY
WIDE's rights and a material breach of this Agreement and that the right to use the Marks granted under this Agreement does not extend beyond the end of the Term of this Agreement. Franchisee expressly covenants that, during the Term of this Agreement and after any termination or expiration, Franchisee will not, directly, or indirectly, commit any act of infringement or contest or aid others in contesting the validity of CITY WIDE's right to use the Marks or take any other action in derogation of CITY WIDE's rights.
- 5.7 Franchisee will not license or attempt to license any other person or entity to use the System, Software or the Marks or allow any other person or entity to use the System, Software or Marks, other than Franchisee's employees or agents and only in connection with the Franchised Business.
- 5.8 Franchisee may use the Marks only to identify the Franchised Business and the products and services specifically identified as a part of the System from time to time in the Operating Manual.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee infringes on City Wide's rights if they use the Marks in any way not expressly authorized by the franchise agreement without prior written consent. This includes any use of the Marks after the termination or expiration of the agreement. The franchisee covenants not to infringe or contest the validity of City Wide's rights to use the Marks. The franchisee's right to use the Marks is solely derived from the agreement and is limited to conducting the franchised business in compliance with City Wide's standards and operating procedures. Any unauthorized use is a breach of the agreement and an infringement of City Wide's rights.
The franchise agreement specifies that a City Wide franchisee cannot use the Marks as part of any corporate or trade name, or with any prefix, suffix, or other modifying words, terms, designs, or symbols, or in any modified form. Additionally, a franchisee cannot use any Mark in connection with the sale of any unauthorized product or service or in any other manner City Wide has not expressly authorized in writing. The franchisee must also provide notices of trademark and service mark registrations as specified by City Wide and obtain any required fictitious or assumed name registrations.
Furthermore, the agreement states that misuse or any unauthorized use of the Marks or Software, or operating the franchised business in a manner inconsistent with the Marks, materially impairs the goodwill associated with the Marks or City Wide's rights. Engaging in any business or marketing any service or product under a name or mark that competes with or is confusingly similar to the City Wide system or the Marks also constitutes infringement. If a franchisee is determined in civil litigation to have infringed on the copyright or trademark, trade name, or service mark of any third party, this is also considered infringement under the agreement.