What is the Crawlspace Medic Franchisor's right regarding the Marks?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
osed or developed by Franchisee for the Crawlspace 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic, LLC owns the Crawlspace Medic Marks and holds the exclusive right to license the Marks to franchisees. As the owner of the Marks, Crawlspace Medic continues to develop, use, and control the use of such Marks to identify for the public the source of services and products marketed under the Marks and the System and to represent the System's high standards of quality, appearance, and service.
Crawlspace Medic franchisees acknowledge that Crawlspace Medic, LLC is the owner of the Marks. Franchisees cannot take any action that would prejudice or interfere with the validity of Crawlspace Medic's rights regarding the Intellectual Property. The franchisee's rights to use the Intellectual Property only extend to operating a Franchised Business according to the franchise agreement.
Any goodwill arising from the franchisee's use of the Intellectual Property and the System benefits Crawlspace Medic, LLC exclusively. Upon expiration or termination of the franchise agreement, no monetary amount will be assigned to any goodwill associated with the franchisee's use of the Intellectual Property. Crawlspace Medic also has the right to purchase, merge, acquire, or affiliate with an existing competitive or noncompetitive franchise network, chain, or any other business, regardless of location, and to operate, franchise, or license those businesses and/or facilities operating under the Marks or any other marks following the purchase, merger, acquisition, or affiliation.