Upon termination of the agreement, what must a Management Recruiters franchisee do regarding the Secondary Name?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, a franchisee must cease using the Secondary Name upon termination of the franchise agreement. The franchisee must stop using the Secondary Name in the same way they must stop using the Marks associated with Management Recruiters.
Management Recruiters grants franchisees the right to use a Secondary Name, provided the franchisor approves it in writing. The approval of any Secondary Name is at Management Recruiters' sole discretion, and they can impose conditions on its use as deemed necessary or advisable. The FDD defines "Secondary Name" as an additional name (in addition to the MRI marks) of Franchisee's choosing that does not incorporate any of the MRI Marks that Franchisee may utilize in operation of the Franchise Business subject to Franchisor's approval, in its sole and absolute discretion, and any conditions attached thereto."
This requirement ensures that upon termination, the franchisee does not continue to operate or represent themselves as part of the Management Recruiters network, which could cause confusion or dilute the brand. Franchisees should be aware that their rights to use the Secondary Name are directly tied to the active term of their franchise agreement.