Will Craters & Freighters reimburse a franchisee for any loss of goodwill associated with a modified or discontinued Mark?
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. 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)
The 2025 Craters & Freighters Franchise Disclosure Document does not explicitly state whether a franchisee will be reimbursed for any loss of goodwill associated with a modified or discontinued mark. However, the document does address the ownership and use of the marks.
According to the FDD, Craters & Freighters owns all rights, titles, and interests, including goodwill, related to its marks. The franchisee only has the privilege to use these marks during the term of the franchise agreement, according to Craters & Freighters' standards. The franchisee acknowledges that any commercial use of the marks benefits Craters & Freighters.
Craters & Freighters retains the right to modify the system, including the marks, and franchisees are expected to comply with these changes, up to an expenditure of $10,000 during the agreement term. The FDD does not specify any compensation to the franchisee for loss of goodwill if Craters & Freighters modifies or discontinues a mark. A prospective franchisee should seek clarification from Craters & Freighters on this matter.