Who owns the principal trademarks and service marks licensed to franchisees of Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is a description of the principal trademarks and service marks that we will license to you. All of the marks listed below are owned by us, have been registered on the Principal Register of the U.S. Patent and Trademark Office ("USPTO"), and have been renewed at the proper time.
We are the owner of all right, title, and interest in and to the Proprietary Marks and the goodwill associated with them. All goodwill associated with the Proprietary Marks remains our exclusive property. All usage of the trademarks by you and any goodwill established will inure to our exclusive benefit.
Your rights to the Proprietary Marks are derived solely from your Franchise Agreement. You will only use the Proprietary Marks to identify your Restaurant except as we authorize. You have no right to apply for registration of any Proprietary Mark. In using the Proprietary Marks, you must strictly follow our Standards, specifications, requirements, and instructions. You may not use any Proprietary Mark or any words or designations similar to the Proprietary Marks (i) as part of any corporate or legal business name, (ii) with any prefix, suffix or other modifying words, terms, designs or symbols (other than logos we have licensed to you), (iii) in selling any unauthorized services or products, (iv) as part of any domain name, electronic address, metatag, search engine keyword, social media account, or otherwise in connection with any website or other electronic medium without our consent, or (v) in any other manner we have not expressly authorized in writing. When your Franchise Agreement expires or terminates, all rights to use the Proprietary Marks will revert to us automatically without payment to you and you will keep no rights in the Proprietary Marks. You may not take any action to question or contest our rights or interest in the Proprietary Marks and the goodwill in the Proprietary Marks.
If you learn of any claim against you for alleged infringement, unfair competition, or similar claims about the Proprietary Marks, you must promptly notify us. We will promptly take the action we consider necessary to defend you. We must indemnify you for any action against you by a third party based solely on alleged infringement, unfair competition, or similar claims about the Proprietary Marks. You may not settle or compromise any of these claims without our written consent. We have the right to control, defend, and settle any claim at our sole expense using our own counsel. You must cooperate with us in the defense. We will have no obligation to defend or indemnify you if the claim against you relates to your use of the Proprietary Marks in violation of the Franchise Agreement.
You must comply with our instructions to modify or discontinue use of any Proprietary Mark or to adopt or use additional or substituted Proprietary Marks. We will not be liable to you for any resulting expenses.
Source: Item 13 — Trademarks (FDD pages 72–73)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, Moes Southwest Grill owns all rights, titles, and interests in the proprietary marks and the goodwill associated with them. This means that Moes Southwest Grill retains full ownership and control over its brand's trademarks and service marks. As a franchisee, you are granted the right to use these marks under the terms of the Franchise Agreement, but you do not acquire any ownership stake in them. All goodwill generated through the use of these marks by the franchisee benefits Moes Southwest Grill exclusively.
This arrangement is typical in franchising, where the franchisor maintains brand consistency and protects its intellectual property. The FDD specifies that franchisees' rights to use the proprietary marks are solely derived from the Franchise Agreement. Franchisees must adhere strictly to Moes Southwest Grill's standards and instructions when using the marks and cannot use them in any unauthorized manner, such as part of a business name or domain name without express written consent. Upon expiration or termination of the Franchise Agreement, all rights to use the proprietary marks automatically revert back to Moes Southwest Grill without any payment to the franchisee.
Moes Southwest Grill also states that they will take action to defend franchisees against claims of infringement or unfair competition related to the proprietary marks, provided the franchisee has used the marks in accordance with the Franchise Agreement. Franchisees are required to notify Moes Southwest Grill of any such claims and cooperate in the defense. However, Moes Southwest Grill is not obligated to defend or indemnify franchisees if the claim arises from a violation of the Franchise Agreement.
It is important for prospective franchisees to understand that they may be required to modify or discontinue the use of any proprietary mark or adopt substituted marks at the instruction of Moes Southwest Grill. While this ensures brand consistency and compliance with legal requirements, Moes Southwest Grill will not be liable for any expenses incurred by the franchisee as a result of these changes. Franchisees cannot take any action to question or contest Moes Southwest Grill's rights or interest in the Proprietary Marks and the goodwill in the Proprietary Marks.