After termination of a Dryer Vent Squad franchise, can a franchisee continue to use the Licensed Marks?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Dryer Vent Squad Business that was the subject of this Agreement and cease to operate such Dryer Vent Squad Business under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Dryer Vent Squad franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or constitute Franchisor's trade secrets;
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, franchisees must cease using the Licensed Marks upon termination or expiration of the franchise agreement. Specifically, franchisees must permanently stop using the System, which includes the Licensed Marks, Confidential Information, Business Management System Data, and the Operations Manual.
This obligation extends to all advertising, marketing, media, and any other information associated with Dryer Vent Squad, the System, and the Licensed Marks. This includes proprietary methods, procedures, product descriptions, techniques, trade secrets, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other tangible or intangible things associated with Dryer Vent Squad.
In practical terms, a former Dryer Vent Squad franchisee cannot continue to operate a similar business using the Dryer Vent Squad brand or any related trademarks, logos, or other identifying marks. They must also take actions to de-identify their former administrative office to avoid confusion. This is a standard practice in franchising to protect the brand's integrity and prevent customer confusion after a franchise agreement ends.