What is the status of the trademark with serial number 98,172,085 for the Extreme Art Studio franchise?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, the trademark for "EXTREME ART STUDIO" with serial number 98,172,085 has a filing date of September 8, 2023, and its status is "Pending on the Principal Register." This means that Extreme Art Studio has applied to register this trademark with the United States Patent and Trademark Office (USPTO), but the registration is not yet complete. The trademark is still under review.

Because the trademark is pending and not yet federally registered, Extreme Art Studio acknowledges that it does not have as many legal benefits and rights as a federally-registered trademark. If the right to use the trademark is challenged, a franchisee may have to change to an alternative trademark, which may increase their expenses. This is a risk factor for prospective franchisees, as they may incur additional costs if a trademark dispute arises.

Extreme Art Studio states that franchisees must adhere to their rules when using the marks and cannot use the Extreme Art Studio name or mark as part of a corporate name or with modifying words, designs, or symbols without prior written consent. Franchisees must also indicate in contracts, advertisements, and with a conspicuous sign that they are independently owned and operated licensed franchisees of Extreme Art Studio Franchising, LLC. Franchisees cannot use the marks in the sale of unauthorized products or services or in any manner not authorized by Extreme Art Studio. All rights and goodwill from the use of the marks accrue to Extreme Art Studio.

Extreme Art Studio will indemnify franchisees against damages for which they are held liable in any proceeding in which their use of any mark in compliance with the Franchise Agreement is held to constitute trademark infringement, and for all reasonable costs incurred in the defense of any claim brought against them, only if the franchisee has timely notified Extreme Art Studio of the claim or proceeding and complies with their directions in responding to the proceeding. Extreme Art Studio may modify or discontinue using any mark, and franchisees must comply with their directions within a reasonable time after receiving notice. However, Extreme Art Studio does not have to reimburse franchisees for costs, loss of revenue, or other expenses of promoting a modified and/or substitute trademark or service mark.