With whom is a 360 Painting franchisee prohibited from communicating regarding trademark infringements, challenges, or claims?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us of any apparent infringement of, or challenge to your use of, any Mark, or any claim by any person of any rights in any Marks, and you may not communicate with any person other than us and our counsel regarding any infringements, challenges or claims unless you are legally required to do so; however, you may communicate with your own counsel at your own expense. We may take whatever action we deem appropriate in these situations, and we have exclusive control over any settlement or proceeding concerning any Mark. You must take any actions that, in the opinion of our counsel, may be advisable to protect and maintain our interests in any proceeding or to otherwise protect and maintain our interests in the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 39–41)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, a franchisee is restricted from communicating with anyone other than 360 Painting and its counsel regarding any trademark infringements, challenges, or claims. However, the franchisee is permitted to communicate with their own counsel at their own expense. This restriction is in place unless the franchisee is legally required to communicate with other parties.
This requirement ensures that 360 Painting maintains control over its trademarks and the legal strategy for protecting them. By centralizing communication, 360 Painting can ensure a consistent and coordinated response to any potential trademark issues. This protects the brand's integrity and value.
For a prospective 360 Painting franchisee, this means that if they encounter any potential trademark infringement or receive any claims related to the 360 Painting trademarks, they must immediately notify 360 Painting. They cannot independently engage with the infringing party or claimant without 360 Painting's authorization. Failure to comply with this requirement could result in a breach of the franchise agreement.
While the franchisee bears the cost of their own counsel, 360 Painting will manage the overall legal strategy and any settlement or proceedings related to the trademarks. This division of responsibility is typical in franchising, where the franchisor is responsible for protecting the brand's intellectual property.