Under what conditions may Crave Cookies require a franchisee to modify or discontinue using copyrighted material?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 Change of Marks. Crave Cookies Franchising may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after Crave Cookies Franchising makes any such change, Franchisee must comply with the change, at Franchisee's expense.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 32–33)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising retains the right to modify or discontinue any of the Marks used under its system. If Crave Cookies Franchising makes such a change, the franchisee must comply within a reasonable time, and at the franchisee's own expense. The term "Marks" refers to trademarks, service marks, and logos. This means Crave Cookies can change its branding, and franchisees are obligated to implement those changes.
This requirement ensures that Crave Cookies can maintain a consistent brand identity and adapt to market changes or legal requirements. For a franchisee, this means they need to be prepared to invest in rebranding efforts, such as updating signage, marketing materials, and other branded items, whenever Crave Cookies Franchising decides to make a change. The franchisee bears the financial burden of these changes.
While franchisees must use the Marks specified by Crave Cookies Franchising, they do not gain any rights in the Marks beyond the right to use them in compliance with the Franchise Agreement. All goodwill associated with the Marks, including any goodwill arising from the franchisee's operation of the business, accrues to the benefit of Crave Cookies Franchising. This is a standard arrangement in franchising, where the franchisor owns the brand and the franchisee pays for the right to use it. Crave Cookies also has the exclusive right to control any legal defense related to the Marks.
In the event of an infringement claim against a Crave Cookies franchisee, Crave Cookies Franchising will defend the franchisee and indemnify them for expenses and damages, provided the franchisee has used the Marks in accordance with the agreement. Franchisees must promptly notify Crave Cookies Franchising of any potential infringement of a Mark by a third party, allowing Crave Cookies Franchising to take appropriate action. This protects the franchisee from legal battles and ensures the brand's integrity is maintained.