factual

What does 'Marks' refer to in the context of the Golden Krust Caribbean Restaurant franchise agreement?

Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDD

Answer from 2024 FDD Document

or leasing similar products or services under a different trademark.

ITEM 13. TRADEMARKS

We grant you the non-exclusive license to use the Marks during the term of the Franchise Agreement. We may also authorize you to use other current or future Marks to operate your Restaurant. By Marks, we mean trade names, trademarks, service marks and logos we use to identify Golden Krust restaurants and the products sold in them. Our affiliate, Golden Krust Patties, Inc., is the owner of the Marks. Golden Krust Patties, Inc. has registered the following marks with the United States Patent and Trademark Office ("USPTO") on the Principal Register:

Mark Registration Date Registration No.
GOLDEN KRUST July 12, 2005 2966992

| Mark | Registration Date | Registration No. | |---|---|---| | August 31, 2021 | 6471570 | | | March 23, 2021 | 6302409 | | As of the date of this Disclosure Document, all affidavits of use required to be filed under Section 8 of the Lanham Act and all renewal registrations to maintain these Marks have been timely filed.

Golden Krust Patties, Inc. has applied to register the following Mark with the USPTO on the Principal Register:

| TRADEMARK | SERIAL NUMBER | FILING DATE | |---|---|---| | GOLDEN KRUST JERK ‘N | 97602927 | 9/22/2022 | | PATTIES | | | This pending Mark does not have any legal benefit and rights as a federally registered trademark. If your right to use this Mark is challenged, you may have to change to an alternative Mark which may increase expenses.

As of the date of this Disclosure Document, we know of no superior rights or infringing uses that could materially affect your use of the principal Marks.

Golden Krust Patties, Inc. has granted us and our affiliate, Golden Krust Caribbean Bakery, Inc., the exclusive right to use and permit our franchisees to use the Marks under a License Agreement dated January 1, 2004. The license is worldwide and exclusive to Golden Krust and related entities and is for a perpetual term. Golden Krust Patties, Inc. has the right to terminate the License Agreement if we commit a breach of the License Agreement. In that event, Golden Krust Patties, Inc. will have the right to assume our obligations under your Franchise Agreement. There are no other agreements that limit our right to license the Marks to you under the Franchise Agreement.

We will take whatever administrative or legal action we deem necessary to protect the Marks and other intellectual property and your rights to use them under the terms of your Franchise Agreement. You must immediately notify us of any potential infringement of the Marks, including claims of rights to any confusingly similar trademarks. Upon notification of any such infringement, use or claim of rights to one of the Marks, we will undertake an investigation of the claim or use. While we will protect and defend the Marks and your right to use them, we have the sole right to determine what action, if any, is to be taken to protect these rights. Any legal action we take to defend your rights to use the Marks in accordance with the terms of your Franchise Agreement will be at our sole expense and we will retain the sole right to control any such legal actions or proceedings we undertake.

Source: Item 13 — TRADEMARKS (FDD pages 23–25)

What This Means (2024 FDD)

According to the 2024 Franchise Disclosure Document, for the Golden Krust Caribbean Restaurant franchise, 'Marks' refers to the trade names, trademarks, service marks, and logos that Golden Krust Caribbean Restaurant uses to identify its restaurants and the products sold within them. Golden Krust Patties, Inc., an affiliate, owns these Marks.

The FDD lists specific registered trademarks, such as "GOLDEN KRUST" (Registration No. 2966992, registered July 12, 2005). Golden Krust Caribbean Restaurant grants franchisees a non-exclusive license to use these Marks during the term of the Franchise Agreement and may authorize the use of other current or future Marks.

Golden Krust Caribbean Restaurant is responsible for protecting the Marks and will take necessary administrative or legal action to do so. Franchisees must notify Golden Krust Caribbean Restaurant of any potential infringement. While Golden Krust Caribbean Restaurant will protect the Marks, it has the sole right to determine the action taken and will bear the expenses for legal actions defending the franchisee's right to use the Marks. However, Golden Krust Caribbean Restaurant is not obligated to reimburse franchisees for costs incurred to change signage or materials if they are required to modify or discontinue the use of any Marks.

The FDD also acknowledges potential existing superior prior rights, such as a canceled trademark registration for "Golden Krust" for bread, buns, and rolls owned by W. E. Long of Chicago, Illinois, and another canceled registration for restaurant services owned by Golden Krust Bakery, Inc. of Cohoes, NY. These historical instances highlight the importance of the franchisor's due diligence in protecting its trademarks and the potential risks franchisees face if trademark issues arise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.