Does Craters & Freighters require franchisees to follow specific rules when using the Marks?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must follow our rules when you use the Marks. You may not use any of the Marks alone or with modifying words, designs or symbols as part of a corporate or business name or in any form on the Internet, including but not limited to URLs, domain names, e-mail addresses, locators, links, metatags or search techniques. You must get our prior written approval of your company name before you file any registration documents. Guidelines regarding proper trademark use and notices are in the Operations Manuals and will be updated periodically in our discretion. You may not use the Marks with an unauthorized product or service, or in a manner not authorized in writing by us.
There are no currently effective material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, any pending infringement, opposition or cancellation proceedings or any pending material litigation involving any of the Marks. No currently effective litigation affects our use or ownership rights in any Mark. No currently effective agreement limits our right to use or license the use of the Marks.
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.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must adhere to specific rules when using the company's trademarks (or "Marks"). These rules dictate that franchisees cannot use the Marks alone or with modifications as part of their corporate or business name, or in any form on the Internet, including URLs, domain names, email addresses, or metatags. Franchisees must obtain prior written approval from Craters & Freighters for their company name before registering it.
The guidelines for proper trademark use are detailed in the Operations Manuals, which Craters & Freighters may update periodically. Franchisees are prohibited from using the Marks with unauthorized products or services, or in any manner not explicitly authorized in writing by Craters & Freighters. If Craters & Freighters modifies or discontinues the use of a Mark, franchisees must also modify or discontinue its use. In such cases, Craters & Freighters will reimburse franchisees for tangible out-of-pocket costs of compliance, such as changing letterhead and business cards.
These trademark usage rules are typical in franchising, as they protect the brand's identity and reputation. The restrictions on domain names and internet usage are particularly important in today's digital marketplace, ensuring consistent brand representation online. The provision for reimbursement of costs if a Mark is changed is a beneficial aspect for franchisees, mitigating some of the financial burden of rebranding.
Craters & Freighters also states that franchisees must not contest the company's rights to the Marks, trade secrets, or business techniques. Franchisees are required to notify Craters & Freighters of any challenges to the Marks, and Craters & Freighters will take action and defend the Marks at its own expense, maintaining control over any related litigation. However, the FDD also states that Craters & Freighters does not have a federal registration for one of its trademarks, which could increase expenses for the franchisee if they have to change to an alternative trademark.