Who keeps the recoveries from a judgment resulting from action against infringement of the Specifications for 7 Brew?
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, 7 Brew and its affiliates have the exclusive right to take action against infringement or unauthorized use of its Specifications. Specifications refer to the confidential and trade-secret Unit Specifications, trademarks, and goodwill associated with the "7 Brew Drive-Thru Coffee" brand.
Specifically, 7 Brew and its affiliates have the right, but not the obligation, to institute any legal proceedings or suits related to infringement or unauthorized use of the Specifications. If they choose to take such action, they can include the franchisee as a party if necessary or desirable.
The FDD states that 7 Brew and its affiliates retain all recoveries (monetary or otherwise) that may result from an award, settlement, or judgment from such legal actions. The franchisee is required to reasonably cooperate with 7 Brew in these enforcement actions at no cost or expense to the franchisee.