Does the Coffee News franchise agreement grant the franchisee ownership of the 'Coffee News' name or format?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
6.1 Franchise of "Coffee News" Name and Format. Nothing in this Agreement shall be construed as an assignment or grant to Franchisee of any right, title or interest in or to the "Coffee News" name or Format, it being understood that all rights relating hereto are reserved by 2703203 Manitoba Inc., a corporation of the Province of Manitoba, Canada and Franchisor except for this license to use the "Coffee News" name and Format only as specifically and expressly provided in this Agreement. Furthermore, nothing in this Agreement shall be construed as an assignment, grant or
license to Franchisee of any right, title or interest in any trade names, service marks, trade symbols, emblems, signs, slogans or insignia not designated by this Agreement as licensed to Franchisee, which may be developed by Franchisor for use with other franchisees. Franchisee recognizes the great value of the goodwill associated with the "Coffee News" name and Format and acknowledges that the name and rights therein and goodwill pertaining thereto belong to Franchisor and 2703203 Manitoba Inc. Franchisee hereby agrees that every use of the "Coffee News" name and Format shall inure to the benefit of Franchisor and 2703203 Manitoba Inc. and that Franchisee shall not at any time acquire any rights in such name. Franchisee agrees that it will not, while this Agreement is in effect or thereafter, attack the title or any rights of Franchisor or 2703203 Manitoba Inc. in and to the "Coffee News" name or Format or attack the validity of this license of the use of such name or Format or do anything which would jeopardize or diminish Franchisor's rights to or the value of such name.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees do not receive ownership of the "Coffee News" name or format. All rights, titles, and interests are reserved by 2703203 Manitoba Inc. and Coffee News, except for the license granted to the franchisee to use the "Coffee News" name and format as specified in the agreement. This means a franchisee can operate under the Coffee News brand but does not own the brand itself.
Coffee News franchisees acknowledge the goodwill associated with the "Coffee News" name and format, understanding that the name, rights, and associated goodwill belong to the franchisor and 2703203 Manitoba Inc. Franchisees agree that any use of the "Coffee News" name and format will benefit the franchisor and 2703203 Manitoba Inc., and they will not acquire any rights to the name. This reinforces that the franchisee's use of the Coffee News name and format is strictly a licensed privilege, not an ownership stake.
Furthermore, franchisees agree not to challenge the title or rights of Coffee News or 2703203 Manitoba Inc. to the "Coffee News" name or format, nor will they attack the validity of the license or take any action that could jeopardize or diminish the franchisor's rights to the name. This clause protects the franchisor's intellectual property and brand identity, preventing franchisees from undermining the brand's value. This is a common practice in franchising, where the franchisor retains ownership of the brand and its associated intellectual property, while franchisees are granted the right to use it under specific terms and conditions.