If I, as a Deck Medic franchisee, develop an Improvement, who owns the rights to it?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
11.F. OWNERSHIP OF INNOVATIONS, IMPROVEMENTS AND INFORMATION
Franchisee agrees that with regard to the Franchised Business, all customer lists, including the contents and information contained in all customer lists, constitute Confidential Information and an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term, and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods, and products conceived or developed by Franchisee, any Owner, and/or Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees relating to the development and operation of Deck Medic Businesses and the System. Franchisee hereby assigns to Franchisor, and Franchisee agrees to procure an assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 11.F. from each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees. Franchisor shall have no obligation to tender any lump sum payment, on-going payments, or any other consideration to Franchisee, any Owner, each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees with respect to any such idea, concept, method, technique or product. Franchisee agrees that Franchisee shall not use, or allow any other person or entity to use, any such concept, method, technique, or product without obtaining Franchisor's prior written approval.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, any ideas, concepts, methods, or products you develop related to the Deck Medic business must be disclosed to Deck Medic. Furthermore, you are required to assign the rights to these developments to Deck Medic. This includes ensuring that your owners, affiliates, and employees also assign their rights to Deck Medic.
This means that if you, as a franchisee, come up with a new technique for deck cleaning or a more efficient business practice, Deck Medic will own the rights to that innovation. You will not receive any lump sum or ongoing payments for these ideas, and you cannot use them without Deck Medic's prior written approval. This clause ensures that Deck Medic maintains control over all aspects of the brand and system, allowing for consistent standards and practices across all franchises.
This type of clause is relatively common in franchising, as franchisors seek to protect their intellectual property and ensure uniformity across the system. However, it's crucial for prospective franchisees to understand that any innovations they develop during the term of the agreement become the property of the franchisor. Franchisees should consider this carefully, especially if they have a strong entrepreneurial spirit and a desire to own the rights to their creations.