Who has the exclusive right to control litigation related to trademark infringements or claims involving the 7 Brew brand?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
directions (such as your costs to change signs or to replace supplies for the Store), any loss of revenue due to any modified or discontinued Mark, or your expenses to promote a modified or substitute trademark or service mark.
E. Indemnification for Use of Marks
We agree to reimburse your damages and expenses incurred in any trademark infringement proceeding disputing your authorized use of any Mark under this Agreement, provided your use has been consistent with this Agreement, the Operations Manual, and Brand Standards communicated to you, and you have timely notified us of, and complied with our directions in responding to, the proceeding. At our option, we and/or our affiliate(s) may defend and control the defense of any proceeding arising from or relating to your use of any Mark under this Agreement.
9. Confidential Information
We and our affiliates possess (and will continue to develop and acquire) certain confidential information, some of which constitutes trade secrets under applicable Law, relating to developing and operating 7 BREW Stores (the "Confidential Information"), which includes but is not limited to:
- (1) information in the Operations Manual and Brand Standards;
- (2) layouts, designs, and other Plans for 7 BREW Stores;
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew and/or its affiliates have the option to defend and control the defense of any proceeding arising from or relating to a franchisee's use of any Mark under the Franchise Agreement. This means that while a franchisee may be involved in a trademark infringement proceeding, 7 Brew reserves the right to take over and manage the legal defense.
This control extends to situations involving data security incidents. If a data security incident occurs at a franchisee's store, 7 Brew (and its designated affiliates) has the right, but not the obligation, to take any action or pursue any proceeding or litigation. Furthermore, 7 Brew maintains control over the direction and handling of such action, proceeding, or litigation, including any remediation efforts.
These provisions are typical in franchising, as the franchisor has a vested interest in protecting its brand and intellectual property. By retaining control over litigation, 7 Brew can ensure consistent legal strategies and protect the overall brand image. However, it also means that franchisees may have limited autonomy in defending themselves in these types of legal matters and must comply with 7 Brew's directions.