Definition:
Item 14 in a Franchise Disclosure Document (FDD) explains the franchisor’s patents, copyrights, and proprietary tools. It shows you what intellectual property (IP) you can use and explains any restrictions that may apply.
Use It in a Sentence:
Before launching her CoolVu franchise, Olivia reviewed Item 14 of the FDD to learn which materials and systems she was licensed to use.
Why Is Item 14 Important?
When you buy a franchise, you’re not just buying products, you’re buying access to unique systems, designs, and tools. Item 14 explains what intellectual property you can use and how you can use it. This includes things like protected methods, software, or exclusive product designs.
Sometimes, the franchisor owns these IP rights outright. Other times, they might license them from someone else. Either way, Item 14 helps protect your business by making sure you understand what’s included and what’s not.
This section also lists any lawsuits or restrictions tied to those rights. That means you won’t be caught off guard later. You’ll know the rules, the risks, and the legal protections in place before you sign anything.
CoolVu takes IP seriously. Whether it’s their custom wall graphics or innovative window films, they clearly show franchisees what’s protected and how to use it confidently.
Related Dictionary Terms:
- Franchise Disclosure Document (FDD) – Legal summary.
- Item 1 in FDD: Identifies ownership, location, and business ties.
- Item 2 in FDD: Shows leadership experience behind the brand.
- Item 3 in FDD: Lists legal history and potential risks.
- Item 4 in FDD: Discloses past bankruptcies for review.
- Item 5 in FDD: Upfront startup fees listed.
- Item 6 in FDD: Lists ongoing fees for operating the franchise.
- Item 7 in FDD: Outlines estimated startup and operating costs.
- Item 8 in FDD: Lists supplier rules and product standards.
- Item 9 in FDD: Lists franchisee duties and responsibilities.
- Item 10 in FDD: Explains franchisor financing and loan options.
- Item 11 in FDD: Lists franchisor training, tools, and support.
- Item 12 in FDD: Explains territory rights and restrictions.
- Item 13 in FDD: Lists trademarks and legal protections.
- Item 15 in FDD: Explains owner’s operational role.
- Item 16 in FDD: Lists what franchisees can sell.
- Item 17 in FDD: Renewal, transfer, & ending agreements rules.
- Item 18 in FDD: Shows public figures’ roles and ties.
- Item 19 in FDD: Shows sales numbers and earnings data.
- Item 20 in FDD: Tracks openings, closings, and transfers.
- Item 21 in FDD: Shows audited financial statements.
- Item 22 in FDD: Lists all required franchise contracts.
- Item 23 in FDD: Confirms receipt and starts 14-day wait.
