Is a Craters & Freighters franchisee allowed to use the Marks and System in any way they choose?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
be developed, then Franchisee hereby agrees to grant Franchisor a perpetual, royalty-free worldwide license to use and sublicense others to use such Improvements.
8. MARKS.
- 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.
- 8.3 No Contest. Franchisee agrees that, during the term of this Agreement and after its termination or expiration and non-renewal, Franchisee will not directly or indirectly contest or aid in contesting the validity of the Marks or the ownership or rights of the Marks by Franchisor. Furthermore, Franchisee intends and hereby concedes that any commercial use Franchisee may make of the Marks will contribute and inure to the commercial use and benefit of Franchisor, which Franchisor may claim to strengthen and further secure ownership of the Marks. In the event that Franchisee acquires any rights, title or interest in the Marks, Franchisee agrees to assign and hereby assigns all such rights, title, or interest to Franchisor.
- 8.4 DBA Name. When communicating with the public, Franchisee agrees to identify itself as "Craters & Freighters" or "Craters & Freighters of {location}" as set forth on the cover page of this Agreement.
- 8.5 Use of Marks on the Internet. Franchisor retains the sole right to use the Marks and market on the Internet, including all of use website, domain names, URLs, linking, advertising, and co-branding arrangements. Franchisee may not establish a presence on the Internet except as Franchisor may specify, and only after Franchisee obtains Franchisor's prior written consent.
- 8.6 Use of Marks in Franchisee's Name.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee's use of the Marks and System is strictly regulated and not at their sole discretion. The franchisee is granted a "mere privilege" to use the Marks, and this use must adhere to the standards and specifications established by Craters & Freighters in the Franchise Agreement and Operations Manuals. This means the franchisee must follow the franchisor's guidelines on how the brand name and associated logos are displayed and marketed.
The franchisee's use of the Marks is limited to the operation of the franchised business and includes only the Marks designated by Craters & Freighters. The franchisee cannot use any other marks or names owned by Craters & Freighters without explicit permission. Furthermore, the franchisee is prohibited from contesting the validity or ownership of the Marks, ensuring that the franchisor's intellectual property rights are protected.
Craters & Freighters retains the sole right to use the Marks and market on the Internet, including website use, domain names, URLs, advertising, and co-branding arrangements. The franchisee must identify their business as "Craters & Freighters" or "Craters & Freighters of {location}" when communicating with the public. Any signage used on buildings, trucks, or billboards must display the Logo in compliance with Craters & Freighters' brand identity standards. This ensures consistent branding and prevents franchisees from deviating from the established marketing strategies and visual identity of the franchise.