factual

If Devon Creek requires a franchisee to discontinue the use of a Mark, what must the franchisee substitute?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 18.1 Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal shall:
    • 18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Devon Creek owner, franchisee or licensee;
    • 18.1.2 immediately and permanently cease to use the Marks, any imitation of any Mark, Franchisor's copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Licensor, or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
    • 18.1.3 take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within ten (10) days after termination or expiration of this Agreement;

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

Based on the 2024 Devon Creek Franchise Disclosure Document, the franchisee must take action to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Devon Creek. The franchisee must also provide Devon Creek with evidence of compliance within ten days after the termination or expiration of the agreement.

Upon termination or expiration of the Franchise Agreement, the franchisee must immediately and permanently cease to use the Marks, any imitation of any Mark, Devon Creek's copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Devon Creek. This includes ceasing the use of all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks.

In practical terms, this means that if a Devon Creek franchisee is required to discontinue the use of a Mark, they cannot simply replace it with another mark of their choosing. They must remove all instances of the Mark and ensure that no association with Devon Creek remains. This is a standard practice in franchising to protect the brand's intellectual property and ensure consistency across all franchise locations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.