What is the consequence of encumbering the Fast Fix Jewelry And Watch Repairs franchise agreement?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately discontinue the use of the System and the Marks, and the use of any and all signs and printed goods bearing the Marks, or any reference to them.
Franchisee shall not thereafter, directly or indirectly: (i) identify itself in any manner as a franchisee of Franchisor; (ii) publicly identify itself as a former franchisee; (iii) use any of Franchisor's Confidential Information, the Marks, or trade names, service marks or trademarks similar to or likely to be confused with any of the Marks; or (iv) use the FAST-FIX name, the Marks, or any other name or trademark that contains the words "Fast," "Fix," "Jewelry Repair," "Jewelry and Watch Repair," or any phonetic or confusingly similar words, in connection with any business, including a Competitive Business.
Franchisee must take such action as may be required to cancel all fictitious or assumed name(s) or equivalent registrations relating to Franchisee's use of any of the Marks and, at Franchisor option, to assign to Franchisor (or its designee) or cancel any electronic address, domain name or website, or rights maintained in connection with any search engine, that associates Franchisee with Franchisor, the System, or the Marks.
Further, not later than 10 days after the expiration or sooner termination of this Agreement, Franchisee shall remove, or cause to remove, as the case may be, all references existing on the internet—whether direct or indirect or human-readable or machine-readable only—to the Franchised Business, the System (including the Marks), or Franchisor or its owners, officers, or employees.
- (b) Franchisor or its designee shall have the first priority option (but not the obligation) to purchase any or all Franchisee's equipment at its Designated Value, and if Franchisor exercises such option, Franchisee shall sell such items to Franchisor at such price, free and clear of all liens, claims and other encumbrances. "Designated Value" shall mean the lesser of (i) fair market value and (ii) Franchisee's cost less depreciation on a straight line basis of 10% percent per year.
Source: Item 22 — CONTRACTS (FDD page 37)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Fast Fix Jewelry And Watch Repairs franchise agreement outlines specific actions a franchisee must take upon termination or expiration of the agreement, including ceasing use of the System and Marks. Encumbering the franchise agreement would likely trigger termination, leading to these consequences.
Specifically, the franchisee must immediately stop using the Fast Fix Jewelry And Watch Repairs System and Marks, including all signs and printed materials bearing the Marks. They cannot identify themselves as a current or former franchisee, use any of Fast Fix Jewelry And Watch Repairs's confidential information, or use names and trademarks similar to those of Fast Fix Jewelry And Watch Repairs in any business, including a competitive one.
Furthermore, the franchisee is required to cancel any assumed name registrations related to the Marks and, at Fast Fix Jewelry And Watch Repairs's option, assign or cancel any electronic addresses, domain names, or website rights associated with Fast Fix Jewelry And Watch Repairs. Within 10 days of termination, all references to the Franchised Business, System, or Fast Fix Jewelry And Watch Repairs must be removed from the internet.
Additionally, Fast Fix Jewelry And Watch Repairs has the option to purchase the franchisee's equipment at its Designated Value, which is the lesser of fair market value or the franchisee's cost less depreciation at 10% per year. This equipment must be sold free and clear of all liens, claims, and encumbrances. Therefore, encumbering the franchise agreement would lead to the termination of the agreement and the enforcement of these post-termination obligations.