Under what condition can a Management Recruiters franchisee use a Secondary Name?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
using only the Marks licensed hereunder which may be changed, improved, and further developed by Franchisor or its Affiliates from time to time. This grant applies only to the non-exclusive Location selected by the Franchisee and approved by Franchisor, which is more particularly described in Section 4, herein, and in Schedule 1, attached hereto.
- 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, a franchisee can use a Secondary Name if Management Recruiters has approved the name in writing. This approval is at Management Recruiters' sole discretion, and they can impose conditions on its use as they see fit. The franchisee must stop using the Secondary Name if the franchise agreement is terminated.
The FDD also clarifies that Management Recruiters does not conduct a trademark search to ensure the Secondary Name does not infringe on existing trademarks or service marks. It is the franchisee's responsibility to ensure the Secondary Name does not infringe on any other party's trademarks or service marks. If the franchisee discovers any infringing activity related to the Secondary Name, they must immediately inform Management Recruiters and stop using the name.
This means a prospective Management Recruiters franchisee has the option to operate under an additional name besides the primary brand, but this is subject to approval by the franchisor. The franchisee bears the risk of trademark infringement, so they should conduct their own due diligence before proposing a Secondary Name. This is a fairly standard practice in franchising, where franchisors maintain control over branding but may allow some flexibility for local market adaptation.