What happens to the Marks upon termination or expiration and non-renewal of the Craters & Freighters agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
tem 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. Franchisee may not use Franchisor's trade name or trademarks, or any portion of Franchisor's trade name or trademarks, as part of a corporate or trade name, or with any prefix, suffix or other modifying words, terms, designs or symbols, or in any modified form.
- 8.7 Modification or Discontinued Use of Marks.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must immediately discontinue the use of Craters & Freighters' trademarks, service marks, and trade names. The franchisee must also stop doing business under any name or in any manner that could give the public the impression that they are still operating a Craters & Freighters franchise.
Craters & Freighters has the option to require the franchisee to either destroy or return any physical or electronic copies of items bearing the company's marks. If the franchisee fails to take the necessary actions to discontinue the use of Craters & Freighters' trade name and trademarks, Craters & Freighters is irrevocably appointed as the franchisee's attorney-in-fact and can execute any documents necessary to ensure the discontinuation of the use of the marks.
Moreover, even after the termination or expiration of the agreement, the franchisee cannot contest the validity of Craters & Freighters' ownership or rights to the marks. Any commercial use of the marks by the franchisee will be considered to contribute to the benefit of Craters & Freighters, strengthening their ownership of the marks. If the franchisee somehow acquires any rights to the marks, they must assign those rights to Craters & Freighters.
These stipulations are fairly standard in franchising, as franchisors need to protect their brand identity and prevent confusion in the marketplace after a franchise agreement ends. Franchisees should be aware of these requirements and plan accordingly to avoid any potential legal issues after their franchise term concludes.