What must a Craters & Freighters franchisee do if there are any challenges to the Marks?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We will protect your right to use the Marks. You must notify us of any challenges to the Marks. Your Franchise Agreement requires us to take affirmative action when notified of any challenges or any trademark that is similar or confusing to the public. We will defend the Marks at our expense and as we determine. We reserve the right to control any litigation related to the Marks.
You must modify or discontinue the use of a Mark if we modify or discontinue the use of such Mark. If this happens, we will reimburse you for your tangible out-of-pocket cost of compliance (for example, changing letterhead and business cards). You must not directly or indirectly contest our right to the Marks, trade secrets or business techniques.
In 2010, we initiated litigation against Daisychain Enterprises (dba Freight & Crate), Cathy Benz and Fred Benz ("Defendants") for trademark infringement. The Defendants were using the name "Freight & Crate" in the operation of a business in California similar to a Craters & Freighters Franchised Business. On May 5, 2010, the United States District Court for the Northern District of California issued a permanent injunction against the Defendants. The court permanently restrained and enjoined them from (a) using the infringing mark "Freight & Crate" in conjunction with any shipping or packaging services; (b) using the infringing mark "Freight & Crate" in conjunction with any web-based advertisement or print advertisement; (c) using the infringing mark "Freight & Crate" at any call center to suggest that Freight & Crate is affiliated with Craters & Freighters;
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees must notify Craters & Freighters of any challenges to the Marks. The Franchise Agreement requires Craters & Freighters to take affirmative action when notified of any challenges or any trademark that is similar or confusing to the public. Craters & Freighters will defend the Marks at their expense and as they determine, and they reserve the right to control any litigation related to the Marks.
If Craters & Freighters modifies or discontinues the use of a Mark, the franchisee must also modify or discontinue its use. In such cases, Craters & Freighters will reimburse the franchisee for their tangible out-of-pocket cost of compliance, such as changing letterhead and business cards. The franchisee must not directly or indirectly contest Craters & Freighters' right to the Marks, trade secrets, or business techniques.
It is important for prospective franchisees to understand that Craters & Freighters does not have a federal registration for the trademark identified in the table above. Therefore, this trademark does not have many legal benefits and rights as a federally registered trademark. If their right to use this trademark is challenged, the franchisee may have to change to an alternative trademark, which may increase their expenses. Before opening a Franchised Business, franchisees should research the possibility of other businesses using trademarks, trade names, or other commercial symbols similar to the trademarks with superior rights to Craters & Freighters' rights, using telephone directories, trade directories, and Internet directories to avoid the possibility of having to change their business name.