Can ADQ change the trademarks that a Dq Treat franchisee is licensed to use?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
cipal | 01/17/06 | | ORANGE JULIUS | 3247123 | Principal | 05/29/07 | | | 3624481 | Principal | 05/19/09 | ADQ identifies the Trademarks that you are licensed to use in the Operations Manual or otherwise in writing. ADQ has the right to change the Trademarks you are licensed to use periodically through changes to the Operations Manual, or otherwise in writing, any of which may be communicated electronically. Your use of the Trademarks and any goodwill is to ADQ's exclusive benefit and you retain no rights in the Trademarks other than a license to use the Trademarks during the term of your franchise agreement. You retain no rights in the Trademarks upon termination of
your franchise agreement. You are not permitted to make any changes or substitutions of any kind in or to the use of the Trademarks unless ADQ directs in writing.
There are currently no effective material determinations by the United States Patent and Trademark Office, the Trademark Trial and Appeal Board, or any state trademark administrator or court, nor any pending infringement, opposition or cancellation proceeding. There is no pending material federal or state court litigation regarding ADQ's use or ownership rights in the Trademarks. There are currently no effective agreements that significantly limit ADQ's rights to use or license the use of the Trademarks in a manner material to the franchise. ADQ does not know of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks in the state where your franchised business will be located.
ADQ is not obligated to protect your right to use the Trademarks, or to protect you against infringement or unfair competition claims arising out of your use of the Trademarks, or to participate in your defense or indemnify you.
Source: Item 13 — UItem 13U***:** U**Trademarks (FDD pages 49–50)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, ADQ has the right to change the trademarks that a franchisee is licensed to use. ADQ identifies the specific trademarks a franchisee can use in the Operations Manual or in writing. These trademarks can be changed periodically through updates to the Operations Manual or via written communication, potentially delivered electronically. Franchisees do not gain any rights to the trademarks beyond the license granted during the franchise agreement's term and cannot alter the trademarks without ADQ's written consent. Upon termination of the franchise agreement, all rights to the trademarks are forfeited.
This ability for Dq Treat to modify the licensed trademarks means that franchisees must stay updated with any changes communicated by ADQ. These changes could require franchisees to update signage, marketing materials, or product packaging at their own expense to comply with the new trademark guidelines.
Furthermore, Dq Treat is not obligated to protect a franchisee's right to use the trademarks or defend against infringement claims arising from their use. ADQ retains control over any litigation related to the trademarks and can decide whether to pursue or settle infringement actions. If a third party claims superior rights to the trademarks, Dq Treat can require franchisees to make necessary changes or substitutions immediately at the franchisee's expense, without providing any rights or compensation to the franchisee for the modification or discontinued use of a trademark.
Prospective franchisees should be aware of these conditions, as they bear the financial responsibility for implementing any trademark changes mandated by Dq Treat and have no recourse if forced to discontinue using a trademark. This arrangement is fairly typical in franchising, where the franchisor maintains strict control over its brand and trademarks to ensure consistency and protect its intellectual property.