Does the Craters & Freighters franchise agreement allow the franchisee to use the marks in applying for permits?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1 Ownership of Marks. Franchisee acknowledges Franchisor is the exclusive owner of all right, title, and interest, together with all the goodwill, of the Marks. Nothing herein shall give Franchisee any right, title, or interest in or to any of the Marks, except a mere privilege during this Agreement to display and use the Marks according to the standards and specifications established by Franchisor in this Agreement and the Operations Manuals.
- 8.2 Permitted Use. Franchisee acknowledges and agrees that Franchisee's use of the Marks applies only in connection with the operation of the Franchised Business, and includes only such Marks as are now designated, or which may hereafter be designated in the Operations Manuals or otherwise in writing as part of the System (which might or might not be all of the Marks pertaining to the System owned by Franchisor), and does not include any other mark, name, or indicia of origin of Franchisor now existing or which may hereafter be adopted or acquired by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are granted a limited privilege to display and use the Craters & Freighters marks strictly in connection with operating their franchised business. This usage must adhere to the standards and specifications established by Craters & Freighters, as outlined in the franchise agreement and operations manuals.
However, the FDD excerpt does not explicitly state whether this permitted use extends to applying for permits. While franchisees are allowed to use the marks for operating the business, the document does not clarify if this includes the administrative process of securing permits, which could be interpreted as separate from the day-to-day operation.
Therefore, prospective Craters & Freighters franchisees should seek clarification from the franchisor regarding the permissibility of using the marks when applying for necessary permits and licenses. Understanding the scope of permitted mark usage is crucial for ensuring compliance and avoiding potential breaches of the franchise agreement.