What is a 7 Brew franchisee's required action to receive reimbursement for damages and expenses incurred in a trademark infringement proceeding?

According to 7 Brew's 2025 Franchise Disclosure Document, if a franchisee faces a trademark infringement proceeding due to their authorized use of a 7 Brew mark, 7 Brew will reimburse the franchisee for damages and expenses incurred. However, this reimbursement is contingent upon certain conditions.

First, the franchisee's use of the mark must have been consistent with the franchise agreement, the Operations Manual, and the Brand Standards communicated by 7 Brew. This means the franchisee must adhere strictly to the guidelines and standards set by 7 Brew in all aspects of their business operations and marketing. Second, the franchisee must promptly notify 7 Brew of the trademark infringement proceeding.

Finally, the franchisee must comply with 7 Brew's directions in responding to the proceeding. This implies that 7 Brew has the right to control the defense strategy and make decisions regarding the legal proceedings. 7 Brew also retains the option, either directly or through its affiliates, to defend and control the defense of any proceeding arising from the franchisee's use of any mark under the agreement. This clause highlights the importance of franchisees adhering to brand standards and promptly involving 7 Brew in any potential legal issues related to trademark use.