factual

Does Dryer Vent Squad reserve the right to modify the marks franchisees can use?

Dryer_Vent_Squad Franchise · 2024 FDD

Answer from 2024 FDD Document

Under the terms of the Franchise Agreement, you will be granted a license to use the "Dryer Vent Squad" trademark and those other marks identified in the chart below in connection with the operations of the Franchised Business. We reserve the right to supplement and modify the marks that you may or may not use in connection with the operations of your Dryer Vent Squad Business. You may only use the Licensed Marks as authorized by us in writing and under the terms of your Franchise Agreement. You may not use the Licensed Marks in the name of any corporate entity that you establish.

Source: Item 13 — TRADEMARKS (FDD pages 38–39)

What This Means (2024 FDD)

According to Dryer Vent Squad's 2024 Franchise Disclosure Document, Dryer Vent Squad retains the right to modify the trademarks that franchisees are authorized to use. Specifically, Dryer Vent Squad can supplement or change the marks used in connection with the operation of the Dryer Vent Squad business. Franchisees are only allowed to use the licensed marks as authorized by Dryer Vent Squad in writing and under the terms of the Franchise Agreement. Franchisees are prohibited from using the licensed marks in the name of any corporate entity they establish.

Dryer Vent Squad will protect the franchisee's right to use the licensed marks against claims of infringement and unfair competition, provided the franchisee uses the marks according to the Franchise Agreement and Dryer Vent Squad's instructions. Dryer Vent Squad will also indemnify franchisees against direct damages for trademark infringement arising from their use of the licensed marks, provided the franchisee complies with the Franchise Agreement, the manuals, and Dryer Vent Squad's written instructions, and has given timely notice of the claim and control of the defense to Dryer Vent Squad.

If a third party establishes superior rights to the marks, Dryer Vent Squad will modify or replace the licensed marks, and franchisees must use the revised marks as determined by Dryer Vent Squad. In such cases, Dryer Vent Squad's sole obligation is to reimburse the franchisee for the direct out-of-pocket costs of complying with this obligation, such as alterations in signage and replacement of marketing materials. This is a fairly standard clause in franchise agreements, as franchisors need to protect their trademarks while also adapting to potential legal challenges or changes in the marketplace.

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.