What are the specific obligations of a City Wide franchisee related to protecting the trademarks and service marks licensed to the franchisor (Item 13) as outlined in the franchisee's obligations (Item 9)?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
or ownership of any of the Marks. All provisions of this Agreement applicable to the Marks also apply to any additional trademarks, service marks, and commercial symbols CITY WIDE authorizes Franchisee to use during the Term of this Agreement.
- 5.2 Franchisee will not use any of the Marks or portion of any of 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. Franchisee will not 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. Franchisee will give such notices of trademark and service mark registrations as CITY WIDE specifies and obtain such fictitious or assumed name registrations as may be required under applicable law.
- 5.3 Franchisee will promptly notify CITY WIDE of any claim, demand, or cause of action based upon or arising from any attempt by any other person, firm or corporation to use the Marks or any colorable imitation of them. Franchisee will notify CITY WIDE of any action, claim or demand against Franchisee relating to the Marks, within ten (10) calendar days after Franchisee receives notice of any action, claim, or demand. Upon receipt of a timely notice of an action, claim or demand against Franchisee relating to the Marks, CITY WIDE will have the sole and absolute right to defend any such action. CITY WIDE will have the exclusive right to contest or bring action against any third party regarding the third party's use of any of the Marks and will exercise such right at its sole and absolute right. In any defense or prosecution of any litigation relating to the Marks or components of the System undertaken by CITY WIDE, Franchisee will cooperate with CITY WIDE and execute any documents and take all actions as may be desirable or necessary in the opinion of CITY WIDE's counsel, to conduct such defense or prosecution. Both parties will make every effort consistent with the foregoing to protect, maintain, and promote the Marks as identifying the System. CITY WIDE MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE USE, EXCLUSIVE OWNERSHIP, VALIDITY OR ENFORCEABILITY OF THE MARKS.
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees have several obligations regarding the protection of City Wide's trademarks and service marks. These obligations are designed to ensure the consistent and proper use of the marks, protect the brand's reputation, and prevent any unauthorized use by third parties. Franchisees must use the marks only for authorized products and services and in a manner explicitly approved by City Wide in writing. They are also required to display trademark and service mark registration notices as specified by City Wide and to obtain any necessary fictitious or assumed name registrations as required by law.
One critical obligation is the prompt notification to City Wide of any potential infringement or misuse of the marks. Specifically, franchisees must inform City Wide of any claim, demand, or cause of action arising from attempts by others to use the marks or any similar imitations. Additionally, franchisees must notify City Wide within ten calendar days of any action, claim, or demand against them related to the marks. Upon receiving such notice, City Wide has the sole right to defend any such action and to take action against any third party infringing on the marks. Franchisees are obligated to cooperate with City Wide in any litigation related to the marks, including executing necessary documents and taking required actions as deemed necessary by City Wide's counsel.
Furthermore, franchisees cannot use the marks as part of any corporate or trade name, or in any modified form, or in connection with unauthorized products or services. They must comply with City Wide's directions to modify or discontinue the use of any mark. Franchisees also acknowledge that City Wide owns the rights to the marks and that any goodwill established through the franchisee's use of the marks benefits City Wide exclusively. Franchisees are prohibited from contesting the validity or ownership of the marks at any time. These measures collectively aim to safeguard City Wide's brand identity and prevent any actions that could dilute or harm its trademarks and service marks.