What right does Craters & Freighters grant to the franchisee regarding the use of Copyrighted Works?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you the right to use this proprietary and copyrighted information ("Copyrighted Works") in connection with your operation of your Franchised Business, but these copyrights remain our sole property.
There are currently no effective determinations of the United States Copyright Office or any court regarding any Copyrighted Works of ours, nor are any proceedings pending, nor are there any currently effective agreements between us and third parties pertaining to the Copyrighted Works that will or may significantly limit your use of our Copyrighted Works.
Our Operations Manuals, electronic information and communications, sales and promotional materials, the development and use of our system, standards, specifications, policies, procedures, information, concepts and systems on, knowledge of and experience in the development, operation and franchising of Craters & Freighters Franchised Businesses, and training techniques used to provide services, information concerning product and service sales, operating results, financial performance and other financial data of Craters & Freighters Franchised Businesses and other related materials are proprietary and confidential ("Confidential Information") and are considered to be our property to be used by you only as described in the Franchise Agreement or the Operations Manuals. Where appropriate, certain information has also been identified as trade secrets ("Trade Secrets"). You must maintain the confidentiality of our Confidential Information and Trade Secrets and adopt reasonable procedures to prevent unauthorized disclosure of our Trade Secrets and Confidential Information. You must ensure and require that all of the owners, officers, directors, shareholders, and partners of the franchisee entity execute a prescribed form of confidentiality and non-competition agreement that will be in substantially the same form attached to the Franchise Agreement as Exhibit E ("Confidentiality and Non-Competition Agreement").
We will disclose parts of the Confidential Information and Trade Secrets to you as we deem necessary or advisable for the development of your Franchised Business during training and in guidance and assistance furnished to you under the Franchise Agreement, and you may learn or obtain from us additional Confidential Information and Trade Secrets during the term of the Franchise Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the company grants franchisees the right to use its proprietary and copyrighted information, referred to as "Copyrighted Works," specifically for operating their franchised business. This includes designs contained in the Marks and the layout of advertising materials. However, Craters & Freighters retains sole ownership of these copyrights. While Craters & Freighters claims common law and federal copyrights in items such as Operations Manuals, trademarks, website, computer software programs and advertising materials, it has not filed an application for copyright registration for these items.
This means that as a franchisee, you are permitted to utilize Craters & Freighters's copyrighted materials to run your business, but you do not own the rights to these materials. You cannot reproduce, distribute, or create derivative works from these materials outside the scope of your franchise agreement. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over its brand and marketing materials.
The FDD also states that there are no effective determinations of the United States Copyright Office or any court regarding any Copyrighted Works of Craters & Freighters, nor are any proceedings pending. Additionally, there are no currently effective agreements between Craters & Freighters and third parties that will or may significantly limit your use of their Copyrighted Works. This suggests that there are no known legal restrictions that would prevent a franchisee from using the copyrighted materials as intended.
Furthermore, the franchisee must notify Craters & Freighters within three days if they become aware of any unauthorized use of similar language, visual images, or recordings that resemble Craters & Freighters's Copyrighted Works. They must also inform Craters & Freighters if anyone challenges their use of these copyrighted materials. Craters & Freighters will then decide what action to take, if any, to protect their rights. The franchisee is prohibited from contesting Craters & Freighters's rights to their Copyrighted Works and must assist Craters & Freighters in protecting these rights.