What rights does the Closet Storage Concepts franchisee have regarding the Proprietary Marks?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. The System is identified by various trade names, trademarks and service marks used by Franchisor and its franchisees including, without limitation, the service marks "Closet & Storage Concepts®", "Conquer Closet Clutter®", "Closet & Storage Concepts (and Design)®", "Getting Organized is Always in Style®," "Getting Organized is Always in Style!," "Got Space?" and other identifying marks and symbols that Franchisor uses now or may later use as part of the System (the "Proprietary Marks").
The rights to all the Proprietary Marks shall be owned exclusively by Franchisor or its parents or affiliates.
- C. Franchisor is engaged in the business of granting franchises to qualified individuals and business entities to use the System to operate Closet & Storage Concepts franchises.
Franchisor grants to Franchisee, and Franchisee accepts, all subject to the terms of this Agreement: a franchise to establish and operate one Closet & Storage Concepts business using the Closet & Storage Concepts System and the Proprietary Marks pursuant to this Agreement (the "Franchised Business").
Franchisee shall use the Proprietary Marks, participate in the promotional, advertising and marketing programs that are made available to Franchisee, and have access to certain proprietary trade secrets, marketing and business expertise of Franchisor, as they may be modified from time to time, in connection with the Franchised Business.
- 5.8.2 Protection. Franchisee shall promptly notify Franchisor of any infringement of, or challenge to, the Proprietary Marks, and Franchisor or Licensor, shall in its discretion take the action it
deems appropriate. Franchisee must not communicate with any person other than legal counsel, Franchisor and Franchisor's legal representative in connection with any infringement challenge or claim. Franchisor shall indemnify and hold Franchisee harmless from any suits, proceedings, demands, obligations, actions or claims, including costs and reasonable attorneys' fees, for any alleged infringement under federal or state trademark law arising solely from Franchisee's use of the Proprietary Marks in accordance with this Agreement or as otherwise set forth by Franchisor in writing if Franchisee has promptly notified Franchisor of such claim and cooperated in the defense of any claim. If Franchisor or Licensor undertakes the defense or prosecution of any litigation pertaining to any of the Proprietary Marks, Franchisee agrees to execute any and all documents and do such acts and things as may, in the opinion of counsel for Franchisor or Licensor, be necessary to carry out such defense or prosecution.
- 5.8.3 Franchisee's Name.
Franchisee agrees not to use the Proprietary Marks or any part of a Proprietary Mark in its corporate name.
5.8.4 **In
5.8.5 Authorized and Unauthorized Use. At Franchisor's direction, Franchisee shall use the Proprietary Marks in conjunction with the symbol "SM," "TM" or "®", as applicable, in order to indicate the registered or unregistered status of the Proprietary Marks.
Franchisee shall not use any of the Proprietary Marks in connection with the offer or sale of any unauthorized products or services or in any other manner not explicitly authorized in writing by Franchisor.
Franchisee may not use any other marks, names, commercial symbols or logo type in connection with the operation of the Franchised Business.
5.8.6 Franchisor's Use of Marks. Franchisor, its affiliates and Licensor may use and register the Proprietary Marks as they deem advisable in their discretion including without limitation, developing and establishing other systems using the same or similar Proprietary Marks alone or in conjunction with other marks and granting licenses and/or franchises in connection with the same or similar Proprietary Marks without providing any rights to Franchisee.
5.8.7 Electronic Mail and Domain Names.
Except as authorized by Franchisor in writing, Franchisee shall not use the Proprietary Marks, or any abbreviation, variation or other name associated with the Closet & Storage Concepts System as part of any e-mail address, domain name, and/or other identification in any electronic medium.
- 1.8 Other Channels of Distribution. Franchisor and Franchisor's affiliates, reserve the unrestricted right to offer products and services, whether now existing or developed in the future, identified by the Proprietary Marks or other marks Franchisor and/or Franchisor's affiliates own or license, through any distribution method Franchisor or its affiliates may establish, and may franchise or license others to do so, both within and outside the Territory, regardless of whether the offering of products or services in the other channels of distribution compete with Franchisee's Closet & Storage Concepts business.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the rights to all proprietary marks are exclusively owned by the franchisor or its affiliates. However, Closet Storage Concepts grants the franchisee the right to operate a business using the Closet & Storage Concepts System and the Proprietary Marks. The franchisee must use these marks and participate in promotional programs. Franchisees must use the Proprietary Marks in conjunction with the symbol "SM," "TM" or "®", as applicable, to indicate the registered or unregistered status of the Proprietary Marks. Franchisees cannot use any other marks, names, commercial symbols, or logo types in connection with the operation of the Franchised Business.
Closet Storage Concepts franchisees are required to notify the franchisor of any infringement or challenges to the Proprietary Marks. The franchisor will then decide what action to take. Franchisees are prohibited from communicating with anyone other than legal counsel, the franchisor, and the franchisor's legal representative regarding any infringement challenge or claim. Franchisees are also indemnified against claims arising from their authorized use of the Proprietary Marks, provided they promptly notify the franchisor of any such claim and cooperate in its defense.
Furthermore, franchisees cannot use the Proprietary Marks or any part of them in their corporate name without written approval from Closet Storage Concepts. Franchisees also cannot use the Proprietary Marks or any associated name as part of any email address or domain name, unless explicitly authorized in writing by the franchisor. The franchisor reserves the right to use and register the Proprietary Marks as they see fit, including developing other systems using the same or similar marks and granting licenses or franchises without providing any rights to the franchisee. Closet Storage Concepts also retains the right to offer products and services identified by the Proprietary Marks through any distribution method, regardless of whether it competes with the franchisee's business.