In what manner must an Endless Summer Sweets franchisee use the Marks specified by the franchisor?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.1 Authorized Marks. Franchisee shall not use any trademarks, service marks or logos in connection with the Business other than the Marks. Franchisee shall use all Marks specified by Franchisor only in the manner designated by Franchisor. Franchisee has no rights in the Marks other than the right to use them in the operation of the Businessin compliance with this Agreement. All use of the Marks by Franchisee and any goodwill associated with the Marks, including any goodwill arising due to Franchisee's operation of the Business, shall inure to the exclusive benefit of Franchisor.
- 12.2 Change of Marks. Franchisor may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after Franchisor makes any such change, Franchisee must comply with the change at Franchisee's sole expense.
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Franchisor shall defend Franchisee (at Franchisor's expense) against any Action by a third-party alleging
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, a franchisee must only use the trademarks, service marks, and logos specified by Endless Summer Sweets and only in the manner that Endless Summer Sweets designates. The franchisee has no rights in the marks other than to use them to operate their business in compliance with the franchise agreement. All use of the marks by the franchisee and any goodwill associated with the marks, including any goodwill arising due to the franchisee's operation of the business, benefits Endless Summer Sweets exclusively.
Endless Summer Sweets retains the right to add, modify, or discontinue any marks used under the system. The franchisee must comply with any such change within a reasonable time after Endless Summer Sweets makes the change, and the franchisee bears the expense of compliance.
If the franchisee has used the marks according to the franchise agreement, Endless Summer Sweets will defend the franchisee (at Endless Summer Sweets's expense) against any action by a third party alleging trademark infringement. This obligation is contingent upon the franchisee promptly notifying Endless Summer Sweets of any potential infringement claim.
Upon termination or expiration of the franchise agreement, the franchisee must cease doing business under any of the marks. Within 30 days after termination or expiration, the franchisee must remove all marks, signage, and trade dress of an Endless Summer Sweets business from the location, to the reasonable satisfaction of Endless Summer Sweets.