Who has the sole discretion to approve a Secondary Name for a Management Recruiters franchise?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
- **2.2.
Secondary Name.** Based on the unique characteristics of the placement and staffing industry, Franchisor grants Franchisee the right to use a Secondary Name provided that Franchisor has first approved the Secondary Name in writing.
The approval of the Secondary Name will be within Franchisor's sole and absolute discretion.
Franchisor may condition the use of Secondary Name by Franchisee on any conditions it deems necessary or advisable.
Franchisee may use the Marks, and the Secondary Name in such manner and under such circumstances as Franchisor may determine from time to time.
Franchisee acknowledges and agrees that the Secondary Name is used solely for the operation of the Franchise Business and agrees that upon termination of this Agreement, for any reason, it must cease use of the Secondary Name in the same manner as it must cease use of the Marks, as more fully described in Section 12, herein.
- **2.3.
Non-Infringement of Secondary Name.** Franchisee acknowledges that Franchisor does not conduct a trademark search to determine if Franchisee's Secondary Name infringes on the trademarks or service marks used by another.
It is Franchisee's sole responsibility to ensure that its use of a Secondary Name does not infringe on any other party's trademarks or service marks.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the franchisor has the sole and absolute discretion to approve a Secondary Name for a franchisee. A "Secondary Name" is defined as an additional name chosen by the franchisee, which does not incorporate any of the Management Recruiters marks, that the franchisee may use in operating the franchise business, subject to the franchisor's approval and any conditions attached.
This means that while franchisees have the option to use a Secondary Name to operate their Management Recruiters franchise, they cannot do so without the explicit written approval of the franchisor. The franchisor's approval is not guaranteed and is entirely at their discretion. Furthermore, Management Recruiters can impose conditions on the use of the Secondary Name if they deem it necessary or advisable.
It is also the franchisee's responsibility to ensure that the Secondary Name does not infringe on any other party's trademarks or service marks. If the franchisee learns of any infringing activity involving the Secondary Name, they must immediately notify Management Recruiters and cease using the Secondary Name. This highlights the importance of conducting thorough trademark searches before proposing a Secondary Name to avoid potential legal issues and ensure compliance with the franchise agreement.