Does the Monicals Pizza franchise agreement grant the franchisee the right to use the Marks?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's right to use the Marks is derived solely from this Agreement, is non-exclusive and is limited to the conduct of business by Franchisee pursuant to, and in compliance with, this Agreement and all applicable standards, specifications and operating procedures prescribed from time to time by Franchisor. Any unauthorized use of the Marks by Franchisee is a breach of this Agreement and an infringement of the rights of Franchisor in and to the Marks. Franchisee's use of the Marks, and any goodwill created thereby, shall inure to the benefit of Franchisor. Franchisee shall not at any time acquire an ownership interest in the Marks by virtue of any use it may make of the Marks. This Agreement does not confer any goodwill, title or interest in the Marks to Franchisee. Franchisee shall not, at any time during the term of this Agreement or after its termination or expiration, contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of any of the Marks.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the franchise agreement does grant the franchisee the right to use Monicals Pizza's marks. However, this right is not absolute. The franchisee's right to use the marks is derived solely from the franchise agreement, is non-exclusive, and is limited to conducting business according to the agreement and Monicals Pizza's standards and operating procedures. Any unauthorized use of the marks is a breach of the agreement and an infringement of Monicals Pizza's rights. The franchisee cannot acquire any ownership interest in the marks through their use, and all goodwill created by the franchisee's use of the marks benefits Monicals Pizza. The franchisee also cannot contest the validity or ownership of the marks.
There are also limitations on how the franchisee can use the marks. The franchisee cannot use any mark as part of their business entity name or in connection with the sale of unauthorized products or services. The franchisee must include notices of trademark and service mark registrations as specified by Monicals Pizza and obtain any required fictitious or assumed name registrations. The franchisee cannot register any marks similar to those licensed to them. The franchisee must include a notice stating that the franchised restaurant is independently owned and operated.
Upon termination or expiration of the franchise agreement, the franchisee's right to use the marks immediately ceases. The franchisee must stop operating the franchised restaurant and cannot represent themselves as a current or former franchisee. They must also stop using the trade secrets, confidential information, the system, and the marks, including all signs, slogans, symbols, logos, and advertising materials. The franchisee must also take action to cancel or assign to Monicals Pizza any assumed name registration containing the name "MONICAL'S PIZZA®" or any other mark.