What must a Crepe De Licious franchisee do if they become aware of infringing uses of the Marks?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
10.01 Ownership of the Marks. You acknowledge that we or our affiliates own all rights, title and interest in and to the Marks. You will not acquire any proprietary interest in the Marks, and you will not challenge ownership of the Marks or our right to use the Marks. Except as expressly provided in this Agreement, you will not acquire any rights to the Marks. Your right to use the Marks is merely a nonexclusive license, derived solely under this Agreement.
10.02 Registration. We or our affiliates have taken and will take all steps reasonably necessary, in our and their sole opinion, to preserve and protect ownership of, and the validity of, the Marks. You will not apply for governmental registration of the Marks, or contest the registration status of the Marks. You will display the Marks, and give notice of trademark registration and claims in the following manner: "CREPE DE LICIOUS" (or as otherwise required in the Operations Manual). You will cooperate fully and in good faith with us and our affiliates for the purpose of maintaining registrations and prosecuting applications for the Marks, and otherwise securing and preserving their rights in and to the Marks.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
The 2025 Crepe De Licious Franchise Disclosure Document does not explicitly state the actions a franchisee must take upon discovering potential infringement of the brand's trademarks (the Marks). However, the agreement emphasizes the protection and ownership of these Marks by Crepe De Licious Holding USA, Inc. Crepe De Licious franchisees acknowledge that they do not acquire any proprietary interest in the Marks and cannot challenge the franchisor's ownership or rights to use them. Franchisees are granted a nonexclusive license to use the Marks solely under the terms of the Franchise Agreement.
According to the FDD, Crepe De Licious (or its affiliates) will take the necessary steps to protect the Marks. Franchisees must display the Marks as directed, including providing trademark registration notices in the manner specified in the Operations Manual. Franchisees also commit to cooperating fully with Crepe De Licious in maintaining registrations and prosecuting applications for the Marks, ensuring the brand's rights are secured and preserved.
Given the absence of a specific clause detailing the franchisee's duty upon discovering infringement, it is important for a prospective Crepe De Licious franchisee to seek clarification from the franchisor regarding the expected procedure. Understanding the precise steps to take, such as reporting the suspected infringement to the franchisor, will help protect the brand and maintain a consistent brand image. This inquiry can help a potential franchisee understand their responsibilities in protecting the brand's intellectual property.