What must Crisp & Green franchisees follow when using the Marks?

According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees must adhere to the franchisor's rules and standards when using the Marks. These Marks include trade names, trademarks, service marks, trade dress, and logos used to identify Crisp & Green Restaurants. Crisp & Green retains the right to direct franchisees to modify, discontinue, or replace any Mark, or to use additional or substitute trademarks or service marks. Franchisees are required to comply with these directions within a reasonable time after receiving notice.

Crisp & Green does not commit to reimbursing franchisees for expenses incurred due to these changes. This includes costs related to changing signs or replacing supplies, loss of revenue from modified or discontinued Marks, or expenses for promoting a modified or substitute trademark or service mark. This lack of reimbursement could pose a financial risk to franchisees, as they may need to invest additional capital to comply with Crisp & Green's directives regarding the Marks.

Furthermore, the FDD states that some of Crisp & Green's Marks are not federally registered, which means they lack the legal benefits and rights of federally registered trademarks. If the right to use these unregistered Marks is challenged, franchisees may be required to stop using them and switch to an alternative mark, potentially increasing their expenses. This situation highlights the importance of franchisees understanding the legal protections, or lack thereof, associated with the Marks they are using and the potential financial implications of any required changes.