If a third party infringes on the Specifications, what is the 7 Brew franchisee required to do?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Infringement. Owner shall notify Manufacturer promptly in writing of any actual or suspected infringement or unauthorized use of the Specifications by any third party that may come to its attention. Manufacturer and its affiliates shall have the exclusive right, but not the obligation, to institute any interference, opposition, or cancellation proceeding or suit, or to take any other action, at its expense, joining the Owner as a party if necessary or desirable, on account of any such infringement or unauthorized use, and to keep all recoveries which may be provided by an award, settlement, or judgment resulting from such action. Should Manufacturer and its affiliates decide to enforce their rights in the Specifications, Owner shall reasonably cooperate with them at no cost or expense to Owner.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, if a franchisee (referred to as 'Owner' in this context) suspects that a third party is infringing upon or using the Unit Specifications without authorization, they are obligated to promptly notify the Manufacturer in writing.
7 Brew, through the Manufacturer and its affiliates, retains the exclusive right, but not the obligation, to take action against the infringing party. This may include initiating interference, opposition, or cancellation proceedings, or even a lawsuit. If 7 Brew decides to pursue legal action, the franchisee is required to cooperate reasonably with them, but at no cost or expense to the franchisee.
This arrangement is typical in franchising, where the franchisor protects its intellectual property. The franchisee's role is primarily to inform the franchisor of any potential infringement, while the franchisor takes the lead in legal proceedings. This protects the brand and system standards, while limiting the franchisee's financial exposure to legal costs.