What is the franchisee prohibited from using after termination of the Golden Krust Caribbean Restaurant franchise agreement?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
B. MARKS
Upon the termination or expiration of this Agreement:
- (1) you may not directly or indirectly at any time or in any manner (except with respect to other Golden Krust Restaurants you own and operate) identify yourself or any business as a current or former Golden Krust Franchisee, or as one of our licensees or franchisees, use any Mark, any colorable imitation thereof in any manner or for any purpose or utilize for any purpose any trade name, trade or service mark or other commercial symbol that indicates or suggests a connection or association with us;
- (2) you agree to take such action as may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Mark;
- (3) if we do not have or do not exercise an option to purchase the Restaurant pursuant to Section XVI.E., you agree to deliver to us within thirty (30) days after, as applicable, the effective date of expiration of this Agreement or the Notification Date (as defined in Paragraph E(1) of this Section) all signs, sign-faces, sign-cabinets, marketing materials, forms and other materials containing any Mark or otherwise identifying or relating to a Golden Krust Restaurant and allow us, without liability to you or third parties, to remove all such items from the Restaurant.
- (4) if we do not have or do not exercise an option to purchase the Restaurant pursuant to Section XVI.E., you agree that, after, as applicable, the effective date of expiration of this Agreement or the Notification Date, you will promptly and at your own expense make such alterations we specify to distinguish the Restaurant clearly from its former appearance and from other Golden Krust Restaurants so as to prevent confusion therewith by the public;
(5) if we do not have or do not exercise an option to purchase the Restaurant pursuant to Section XVI.E., you agree that, after, as applicable, the effective date of expiration of this Agreement or the Notification Date, you will notify the telephone company and all telephone directory publishers, as well as all online portals and social media of the termination or expiration of your right to use any telephone numbers or other telephone directory listings associated with any Mark.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee is restricted from several activities related to the Golden Krust brand. Specifically, the franchisee cannot identify themselves or their business as a current or former Golden Krust Caribbean Restaurant franchisee or licensee, unless they own and operate other Golden Krust Caribbean Restaurant locations.
Additionally, the franchisee is prohibited from using any Golden Krust Marks or any imitation of these marks. They cannot use any trade name, service mark, or commercial symbol that suggests an association with Golden Krust Caribbean Restaurant. The franchisee must also take necessary actions to cancel any assumed name registrations related to the use of the Golden Krust Marks.
Furthermore, if Golden Krust Caribbean Restaurant does not exercise its option to purchase the restaurant, the franchisee must remove all signs, marketing materials, and other items containing the Golden Krust Marks and make alterations to distinguish the restaurant from its former appearance to avoid public confusion. The franchisee is also responsible for notifying the telephone company, directory publishers, online portals, and social media platforms about the termination of their right to use any telephone numbers or listings associated with the Golden Krust Marks.