What action must a 1-800-GOT-JUNK? franchisee take if they learn about a claim against their use of the trademarks?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not directly or indirectly oppose our right to our trademarks, trade names, trade secrets or business techniques that are part of our business. You must notify us immediately if you learn about a claim against your use of our trademarks (see Franchise Agreement, Section 12.7). We will take whatever action, if any, we deem appropriate and we have the exclusive right to control any litigation or administrative proceeding involving the Marks licensed to you. We have no obligation to defend you or to take any legal action against others with respect to any claim related to your use of our trademark, and we will not indemnify you against claims of infringement or unfair competition arising out of your use of the Marks.
Source: Item 13 — Trademarks (FDD pages 36–37)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, a franchisee must immediately notify 1-800-GOT-JUNK? if they become aware of any claims against their use of the company's trademarks. This notification requirement is detailed in Section 12.7 of the Franchise Agreement.
1-800-GOT-JUNK? retains the exclusive right to decide on any action taken regarding such claims, including controlling any litigation or administrative proceedings related to the licensed trademarks. However, 1-800-GOT-JUNK? has no obligation to defend the franchisee or take legal action against others concerning the franchisee's use of the trademark. Additionally, 1-800-GOT-JUNK? will not indemnify franchisees against claims of infringement or unfair competition that arise from their use of the trademarks.
This arrangement places the responsibility of trademark protection and response to claims squarely on 1-800-GOT-JUNK?, while requiring franchisees to provide timely notification. Franchisees should be aware that they will not receive direct legal support or financial compensation from 1-800-GOT-JUNK? in the event of a trademark dispute. This is a fairly typical arrangement in franchising, where the franchisor maintains control over brand-related legal matters but may not always provide full indemnity to franchisees.