Must the Coffee News franchisee acknowledge the goodwill associated with the 'Coffee News' name and 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 must acknowledge the goodwill associated with the "Coffee News" name and format. The agreement specifies that franchisees recognize the significant value of this goodwill and understand that the name, rights, and associated goodwill belong to the franchisor, 2703203 Manitoba Inc. Every use of the "Coffee News" name and format by the franchisee must benefit the franchisor and 2703203 Manitoba Inc., ensuring that the franchisee does not acquire any rights to the name.
This acknowledgment is crucial because it protects the Coffee News brand and its reputation. Franchisees agree not to challenge the title or rights of the franchisor or 2703203 Manitoba Inc. to the "Coffee News" name or format, nor can they dispute the validity of the license to use the name. They are prohibited from taking any actions that could jeopardize or diminish the franchisor's rights to or the value of the name.
This requirement is typical in franchising, as franchisors need to maintain control over their brand and ensure consistent quality and representation across all franchise locations. By acknowledging the goodwill and agreeing not to undermine the brand, franchisees contribute to the overall success and value of the Coffee News franchise system. This also protects the franchisor's intellectual property and market position.