Does Creative World School have exclusive worldwide rights to use the Marks?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We license the non-exclusive, worldwide right to use, and grant others the right to use, the Marks from CWSI under an agreement containing a perpetual term. CWSI has the right to terminate our and your use of the Marks if we engage in unauthorized use of the Mark or fail to police its use. There are no other agreements currently in effect which significantly limit our rights to use or license the use of our Marks in a manner material to the franchise. There are no currently effective material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, nor are there any pending infringement, cancellation or opposition proceedings or material litigation, involving the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 48–50)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, CWSI licenses the non-exclusive, worldwide right to use the Marks. This means that while Creative World School has the right to use its trademarks globally, it does not have exclusive rights. CWSI, the owner of the marks, can also license these rights to others. CWSI retains the right to terminate Creative World School's use of the Marks if Creative World School engages in unauthorized use of the Mark or fails to police its use.
This non-exclusive arrangement has important implications for prospective franchisees. It means that CWSI could potentially authorize other entities, possibly even competitors, to use similar trademarks in different markets. While the FDD states that there are no other agreements currently in effect which significantly limit Creative World School's rights to use or license the use of its Marks in a manner material to the franchise, this could change in the future.
As a franchisee, it is important to understand the scope of these trademark rights and any potential limitations. While Creative World School is required to notify franchisees of any modifications or discontinuations of the Marks, and to reimburse franchisees for reasonable direct expenses of changing the School's signs, they are not obligated to reimburse for any loss of revenue attributable to any modified or discontinued Mark or for any expenditures made to promote a modified or substitute trademark or service mark. Prospective franchisees should carefully consider these factors and conduct thorough due diligence to assess the potential impact on their business.