If a Cool Binz franchisee fails to terminate registrations containing the Marks after termination or expiration, who is irrevocably appointed as their attorney-in-fact?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
If, within 30 days after termination or expiration, you have not taken all steps necessary to amend or terminate any registration, telephone number, email address, domain name, URL, or filing of any business name or DBA or any other registration or filing containing the Marks or any names and marks which are identified or associated with the Marks and System, you hereby
irrevocably appoint us as your true and lawful attorney-in-fact for you, and in your name, place and stead and on your behalf, to take action as may be necessary to amend or terminate all registrations and filings, this appointment being coupled with an interest to enable us to protect the Marks and System. We may, at our discretion, choose to have your telephone numbers, domain names and/or URLs forwarded or directed to us.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee fails to take the necessary steps to amend or terminate any registration, telephone number, email address, domain name, URL, or filing of any business name or DBA containing the Marks within 30 days after termination or expiration of the Franchise Agreement, the franchisee irrevocably appoints Cool Binz as their attorney-in-fact. This appointment allows Cool Binz to take action to amend or terminate all registrations and filings to protect the Marks and System. Cool Binz may also choose to have the franchisee's telephone numbers, domain names, and URLs forwarded or directed to them.
This provision is significant for prospective franchisees because it underscores the importance of adhering to the post-termination obligations related to intellectual property. Failure to comply within the specified timeframe grants Cool Binz the power to act on the franchisee's behalf to protect its brand and system. This includes the potential redirection of business leads and online presence to Cool Binz, which could impact the franchisee's future business ventures.
It is a fairly standard practice in franchising to include clauses that protect the franchisor's trademarks and intellectual property after a franchise agreement ends. This ensures brand consistency and prevents former franchisees from leveraging the brand's goodwill for their own benefit after the agreement has ended. Franchisees should be aware of these obligations and the potential consequences of non-compliance, including the franchisor acting as their attorney-in-fact to manage these matters.