How must I use Crown Gold Exchange's copyrighted materials during the term of the franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
rily cease operations of the Business and remedy the dangerous condition. Crown Gold Franchising shall have no liability to Franchisee or any other person for action or failure to act with respect to a dangerous condition.
ARTICLE 12. MARKS
12.1 Authorized Marks. Franchisee shall use no trademarks, service marks or logos in connection with the Business other than the Marks. Franchisee shall use all Marks specified by Crown Gold Franchising, and only in the manner as Crown Gold Franchising may require. Franchisee has no rights in the Marks other than the right to use them in the operation of the Business in compliance with this Agreement. All use of the Marks by Franchisee and any goodwill
associated with the Marks, including any goodwill arising due to Franchisee's operation of the Business, will inure to the exclusive benefit of Crown Gold Franchising.
12.2 Change of Marks. Crown Gold Franchising may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after Crown Gold Franchising makes any such change, Franchisee must comply with the change, at Franchisee's expense.
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Crown Gold Franchising shall defend Franchisee (at Crown Gold Franchising's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Crown Gold Franchising will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (b) Infringement by Third Party. Franchisee shall promptly notify Crown Gold Franchising if Franchisee becomes aware of any possible infringement of a Mark by a third party. Crown Gold Franchising may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 27–28)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange FDD, franchisees must only use the trademarks, service marks, and logos (collectively referred to as "Marks") specified by Crown Gold Franchising and only in the manner that Crown Gold Franchising requires. Franchisees have no rights to the Marks other than using them to operate their Crown Gold Exchange business in compliance with the Franchise Agreement. All goodwill associated with the Marks, including any goodwill arising from the franchisee's operation of the business, will exclusively benefit Crown Gold Franchising.
Crown Gold Exchange retains the right to add, modify, or discontinue any Marks used under the System. Franchisees must comply with these changes within a reasonable time and at their own expense. If a franchisee uses the Marks according to the Franchise Agreement, Crown Gold Exchange will defend the franchisee against any third-party action alleging infringement due to the franchisee's use of a Mark. Crown Gold Exchange will also indemnify the franchisee for expenses and damages if the action is resolved unfavorably to the franchisee.
Franchisees must promptly notify Crown Gold Exchange if they become aware of any possible infringement of a Mark by a third party. Crown Gold Exchange has the exclusive right to control any prosecution or defense of any action related to possible infringement of the Marks. If the franchisee is an entity, it cannot use the words "Crown Gold Exchange" or any confusingly similar words in its legal name. These stipulations ensure that Crown Gold Exchange maintains control over its brand and protects its trademarks, while also providing some protection to franchisees who properly use the Marks.