What remedy is Cream entitled to for unauthorized use of the Marks and System?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that the Marks and the System are owned by us and/or our affiliates. You acknowledge and agree that your use of the Marks and the System and any goodwill established by that use are exclusively for our and our affiliates' (as applicable) benefit. This Agreement does not confer any goodwill or other interests in the Marks or the System upon you (other than the right to operate your Shop under this Agreement). Your unauthorized use of the Marks and the System would be a breach of this Agreement and an infringement on the intellectual property rights of us and our affiliates (as applicable). Your unauthorized use of the Marks and the System will cause us and our affiliates (as applicable) irreparable harm for which there is no adequate remedy at law and will entitle us and our affiliates (as applicable) to injunctive relief. All provisions of this Agreement relating to the Marks and the System apply to any additional or modified components of the Marks and the System we authorize you to use. You may not at any time during or after the Term contest or assist any other person in contesting the validity of any registration for the Marks or the System, and/or our and our affiliates' (as applicable) rights to the Marks and the System.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream retains ownership of its Marks and System, and any goodwill generated through a franchisee's use of them benefits Cream. Unauthorized use by a franchisee constitutes a breach of the franchise agreement and an infringement on Cream's intellectual property rights.
For Cream, the FDD states that unauthorized use of the Marks and the System will cause irreparable harm for which there is no adequate remedy at law. As a result, Cream is entitled to injunctive relief.
This means that Cream can seek a court order to immediately stop a franchisee from using the Marks and System in any unauthorized way. This protection is crucial for Cream to maintain the integrity and consistency of its brand and operational standards across all franchise locations. It also prevents franchisees from potentially damaging the brand's reputation through misuse or unauthorized activities.
For a prospective Cream franchisee, this clause highlights the importance of strictly adhering to the franchise agreement and brand standards. Failure to do so can result in legal action and immediate cessation of operations using Cream's intellectual property.