Is the Management Recruiters license to use the Marks exclusive?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
commencement of New Office Training and annually within ten (10) days of Franchisor's request.
11.5. Reimbursement of Costs. If Franchisee fails to obtain or maintain any policy of insurance required by Section 11.2 or fails to name Franchisor as an additional insured on any such policy, Franchisor may obtain such insurance, and Franchisee shall reimburse Franchisor for the cost of such insurance within fifteen (15) calendar days after Franchisor sends an invoice to Franchisee.
12. TRADEMARKS
- 12.1. Non-Exclusive License. Franchisee's license to use the Marks derives only from and is governed by the terms of this Agreement. This Agreement confers no goodwill or other interest in the Marks other than the non-exclusive right to use them in connection with the Franchise Businessfor the duration of this Agreement. Franchisee acknowledges and agrees that all goodwill resulting from Franchisee's use of the Marks shall inure exclusively to the benefit of Franchisor or its Affiliates, the owner of the Marks. In the event that Franchisor authorizes and licenses Franchisee to use additional proprietary trade and service marks or commercial symbols from time to time during the Term of this Agreement, all provisions of this Agreement which apply to the Marks shall apply equally to all such additional marks and symbols.
- 12.2. Use. Franchisee shall only use the Marks to identify the Franchise Business. Franchisee shall prominently display the Marks on stationery, packaging, and supply materials and in connection with advertising and marketing of the Franchise Business pursuant to the specifications, standards and operating procedures set forth in the Brand Standards Materials.
- **12.3.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the license granted to a franchisee to use the Marks is non-exclusive. Specifically, the franchisee only has the non-exclusive right to use the marks in connection with the Franchise Business for the duration of the agreement. All goodwill resulting from the franchisee's use of the marks inures exclusively to the benefit of Management Recruiters.
Management Recruiters retains several rights regarding the Marks. These include the right to use the Marks themselves in connection with selling products and services, granting other licenses for the Marks (in addition to existing franchisees), granting other rights in, to, and under the Marks, and developing/acquiring rights in other names and marks. Management Recruiters can also develop other systems using the same or similar Marks and grant licenses or franchises without providing any rights to the franchisee.
This non-exclusive arrangement means that Management Recruiters can license the same Marks to other franchisees or use them directly, which could potentially lead to competition between franchisees or between Management Recruiters and its franchisees. A prospective franchisee should consider the implications of this non-exclusive license and how it might affect their business operations and market.