What costs will Dryer Vent Squad reimburse a franchisee for if the Licensed Marks are modified?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
If any third party establishes, to our satisfaction and in our sole discretion, that its rights to the marks are, for any legal reason, superior to any of our rights, then we will modify and/or replace the Licensed Marks and you must use the variances or other service marks, trademarks or trade names required by and as determined by us. Our sole liability and obligation in such event is to reimburse you for the direct out-of-pocket costs of complying with this obligation, which you must document to our satisfaction, including, by way of example, alterations in signage and replacement of marketing materials. There are no agreements currently in effect that significantly limit our rights to use or license the use of the Licensed Marks in any manner material to you.
Source: Item 13 — TRADEMARKS (FDD pages 38–39)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, if a third party successfully claims superior rights to the Licensed Marks, Dryer Vent Squad will modify or replace them. In this case, Dryer Vent Squad's sole obligation is to reimburse the franchisee for direct, out-of-pocket costs incurred to comply with the required changes.
These reimbursable costs must be documented to Dryer Vent Squad's satisfaction. Examples of covered expenses include alterations to signage and the replacement of marketing materials. This means a Dryer Vent Squad franchisee would need to keep detailed records and receipts of all expenses related to these changes to receive reimbursement.
This provision protects Dryer Vent Squad franchisees from bearing the full financial burden of trademark-related legal challenges. However, the franchisee is still responsible for managing the changes and ensuring compliance, even while awaiting reimbursement. It is important to note that reimbursement is limited to direct, out-of-pocket costs, and does not cover indirect losses or lost revenue during the transition.