Is the Coffee News franchisee allowed to diminish the Franchisor's rights to the 'Coffee News' name?
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 are explicitly prohibited from taking any actions that could harm the franchisor's rights to the Coffee News name. The agreement specifies that franchisees cannot attack the title or rights of the franchisor, 2703203 Manitoba Inc., in the Coffee News name or format. They also cannot challenge the validity of the license to use the name or format.
This restriction is in place to protect the goodwill and value associated with the Coffee News brand. The agreement emphasizes that all rights to the Coffee News name and format are reserved by the franchisor and 2703203 Manitoba Inc., except for the specific license granted to the franchisee to operate under that name. Any use of the Coffee News name and format by the franchisee must benefit the franchisor and 2703203 Manitoba Inc., and the franchisee cannot acquire any independent rights to the name.
This clause is standard in franchise agreements, as franchisors need to maintain control over their brand and prevent franchisees from taking actions that could dilute or damage the brand's reputation. For a prospective Coffee News franchisee, this means understanding that they are using the Coffee News name under a limited license and must adhere to the franchisor's guidelines to protect the brand's integrity. Failing to do so could result in a breach of the franchise agreement.