What does Crawlspace Medic consider as 'Intellectual Property'?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
pace Medic brand and approved by Franchisor may be used by other System franchisees without any compensation to Franchisee.
14. INTELLECTUAL PROPERTY
14.1 Ownership.
- 14.1.1. Franchisee expressly understands and acknowledges that Crawlspace Medic, LLC ("Licensor") is the record owner of the Marks. Franchisor holds the exclusive right to license the Marks to franchisees of the System for use pursuant to the System. Franchisee further expressly understands and acknowledges that Franchisor and/or Licensor claims copyrights on certain material used in the System, including but not limited to its website, documents, project designs, advertisements, promotional materials and the Manual, whether or not Franchisor has filed for copyrights thereto with the U.S. Copyright Office. The Marks and copyrights, along with Franchisor's trade secrets, service marks, trade dress and proprietary systems are hereafter collectively referred to as the "Intellectual Property".
- 14.1.2. As between Franchisor and Franchisee, Licensor and Franchisor are the owner of all right, title and interest in and to the Intellectual Property and the goodwill associated with and symbolized by them.
- 14.2. No Interference. Neither Franchisee nor any Principal shall take any action that would prejudice or interfere with the validity of Franchisor or Licensor's rights with respect to the Intellectual Property. Nothing in this Agreement shall give the Franchisee any right, title, or interest in or to any of the Intellectual Property or any of Franchisor's or Licensor's service marks, trademarks, trade names, trade dress, logos, copyrights or proprietary materials, except the right to use the Intellectual Property and the System in accordance with the terms and conditions of this Agreement for the operation of a Franchised Business and only at or from the Franchised Business location or in approved advertising related to the Franchised Business.
- 14.3. Goodwill. Franchisee understands and agrees that any and all goodwill arising from Franchisee's use of the Intellectual Property and the System shall inure solely and exclusively to the benefit of Franchisor and Licensor, and upon expiration or termination of this Agreement and the license herein granted, no monetary amount shall be assigned as attributable to any goodwill associated with Franchisee's use of the Intellectual Property.
- 14.4. Validity. Franchisee shall not contest the validity of, or Franchisor or Licensor's interest in, the Intellectual Property or assist others to contest the validity of, or Franchisor or Licensor's interest in, the Intellectual Property.
- 14.5. Infringement. Franchisee acknowledges that any unauthorized use of the Intellectual Property shall constitute an infringement of Franchisor or Licensor's rights in the Intellectual Property and a material event of default hereunder. Franchisee shall provide Franchisor or Licensor with all assignments, affidavits, documents, information and assistance Franchisor or Licensor reasonably requests to fully vest in Franchisor or Licensor all such rights, title and interest in and to the Intellectual Property, including all such items as are reasonably requested by Franchisor or Licensor to register, maintain and enforce such rights in the Intellectual Property.
- 14.6. Substitution. Franchisor reserves the right to substitute different Marks for use in identifying the System and the Franchised Business, if it in its sole discretion, determines that substitution of different Marks will be beneficial to the System. Franchisor will not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any additions, modifications, substitutions or discontinuation of the Marks. Franchisee covenants not to commence or join in any litigation or other proceeding against Franchisor for any of these expenses, losses or damages.
- 14.7. Franchisee's Use of the Intellectual Property.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the company considers several elements as 'Intellectual Property.' These include the Marks, copyrights on certain material used in the System (such as the website, documents, project designs, advertisements, promotional materials, and the Manual), trade secrets, service marks, trade dress, and proprietary systems. Crawlspace Medic, LLC ('Licensor') is the record owner of the Marks and holds the exclusive right to license the Marks to franchisees.
As a Crawlspace Medic franchisee, it's crucial to understand that you have no ownership rights to any of the Intellectual Property. Your rights are limited to using the Intellectual Property and the System according to the franchise agreement for operating the Franchised Business. Any goodwill arising from your use of the Intellectual Property benefits Crawlspace Medic and Licensor. Upon termination of the agreement, no monetary value will be assigned to any goodwill associated with your use of the Intellectual Property.
Crawlspace Medic retains the right to substitute different Marks for use in identifying the System and the Franchised Business, if it determines that doing so will be beneficial to the System. Franchisees will not be compensated for any expenses, losses, or damages sustained as a result of any additions, modifications, substitutions, or discontinuation of the Marks. Franchisees also agree not to commence or join in any litigation against Crawlspace Medic for any of these expenses, losses, or damages.
As a franchisee, you are prohibited from contesting the validity of Crawlspace Medic's Intellectual Property. Unauthorized use of the Intellectual Property constitutes an infringement of Crawlspace Medic's rights and a material event of default under the agreement. Franchisees must assist Crawlspace Medic in fully vesting all rights, title, and interest in the Intellectual Property, including providing necessary documents and information for registering, maintaining, and enforcing these rights.