Where is a Crawlspace Medic franchisee allowed to use the Intellectual Property?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
chisee, 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic FDD, a franchisee can use the company's intellectual property for operating a franchised business, but only at or from the Franchised Business location or in approved advertising related to the Franchised Business. The agreement grants the franchisee the right to operate at a single location within a designated territory. This territory is specified in an attachment to the agreement.
Franchisees are generally prohibited from selling and soliciting customers through alternative distribution channels. Crawlspace Medic retains the right to offer other products or services not offered under the franchise's marks, or other crawlspace or basement care and repair concepts under the marks or other trademarks, including licensing designs for use in other formats. They also reserve the rights to offer products or services through any channel in the territory other than a dedicated Crawlspace Medic location, such as the Internet.
Upon termination or expiration of the franchise agreement, the franchisee must immediately cease using the Crawlspace Medic marks and any related intellectual property. The franchisee must also identify themselves as an independent Crawlspace Medic franchisee in conjunction with any use of the intellectual property, including on invoices, order forms, receipts, and contracts. Any item offered by the franchisee that contains the marks must be approved by Crawlspace Medic in writing before being distributed or sold.