Is the Coffee News license personal and exclusive to the franchisee?
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, the rights granted to the franchisee are specifically defined, and all other rights are reserved by the franchisor. Specifically, 2703203 Manitoba Inc. and Coffee News retain all rights to the Coffee News name and format, except for the license granted to the franchisee to use them as expressly provided in the agreement. This indicates that the franchisee's rights are limited to those explicitly granted, and they do not extend to any other potential uses or developments of the Coffee News brand.
This agreement explicitly states that nothing within it should be interpreted as an assignment or grant of any right, title, or interest in the "Coffee News" name or format to the franchisee. The franchisee only receives a license to use the "Coffee News" name and format as detailed in the agreement. All other rights remain with 2703203 Manitoba Inc. and Coffee News. The franchisee acknowledges the value of the goodwill associated with the Coffee News name and agrees that all use of the name and format benefits the franchisor and 2703203 Manitoba Inc.
Furthermore, the franchisee cannot challenge the rights of Coffee News or 2703203 Manitoba Inc. to the Coffee News name or format, nor can they attack the validity of the license. They are prohibited from taking any actions that could jeopardize or diminish the franchisor's rights to the name. This underscores that the license is a limited right to use the Coffee News intellectual property, not an ownership stake, and the franchisee must actively protect the brand's integrity. The FDD does not specify whether the license granted to the franchisee is exclusive.