Are there any circumstances under which City Wide's right to use or license the Marks could be limited?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
fringing uses known to CITY WIDE that could materially affect your use of the Marks in this state or in any other state in which the Franchised Businesses are to be located. There are no agreements currently in effect that significantly limit the rights of CITY WIDE to use or license the use of the Marks, trade names, logotypes or other commercial symbols in any manner material to the franchise, except as set forth herein.
CITY WIDE may change or modify the System presently identified by the Marks including the adoption and use of new or modified trade names, service marks, trademarks or copyrighted materials, new programs or systems for the franchise system, new product lines, new employee training, new equipment
or new techniques and you shall accept, use and display any changes in the System as if they were part of the Franchise Agreement at the time of its execution.
All usage of the Marks by you and any goodwill established thereby will inure to the exclusive benefit of CITY WIDE and its Licensor. You are prohibited from contesting the validity or ownership of any of the Marks or assisting any other person in contesting the validity or ownership of any Marks during the term of the Franchise Agreement or at any time thereafter.
You shall 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 thereof. You shall notify CITY WIDE of any action, claim, or demand against you relating to the Marks, within 10 calendar days after you receive notice of said action, claim, or demand. Upon receipt of timely notice of an action, claim, or demand against you relating to the Marks, CITY WIDE or its Licensor, shall have the sole and absolute right to defend any action. CITY WIDE or its Licensor shall have the exclusive right and obligation to contest or bring action against any third party regarding the third party's use of any of the Marks and shall exercise this 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 or its Licensor, you shall cooperate with CITY WIDE, or its Licensor sign any documents and take all actions as may be desirable or necessary in the opinion of CITY WIDE's or Licensor's counsel, to carry out this defense or prosecution.
Source: Item 13 — TRADEMARKS (FDD pages 39–41)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, there are limited circumstances that could affect City Wide's right to use or license its trademarks. The document states that there are no agreements currently in effect that significantly limit City Wide's rights to use or license the use of its trademarks, trade names, logotypes, or other commercial symbols in any manner material to the franchise, except as set forth in the document. This suggests that while limitations are not expected, the possibility exists.
In the unlikely event that City Wide loses the right to license the "CITY WIDE" mark, City Wide would take action to secure and provide an appropriate replacement mark for the franchisee's use. This replacement would be provided at no additional cost to the franchisee, except for the cost of stationery and other supplies. This indicates that City Wide recognizes the importance of the trademarks to the franchise system and is prepared to take steps to protect the franchisee's interests in the event of a trademark issue.
Furthermore, the Franchise Agreement stipulates that franchisees must promptly notify City Wide of any claims or actions related to the trademarks. City Wide or its licensor has the sole right to defend any action regarding the marks and to take action against any third party's use of the marks. Franchisees are required to cooperate with City Wide or its licensor in any litigation relating to the marks. However, City Wide makes no representation or warranty as to the use, exclusive ownership, validity, or enforceability of the marks and has no obligation to indemnify franchisees for damages in administrative or judicial proceedings involving the marks. This highlights the shared responsibility between City Wide and its franchisees in protecting the trademarks, while also clarifying the limits of City Wide's liability.