Under what conditions will 7 Brew reimburse a franchisee's damages and expenses incurred in a trademark infringement proceeding?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew will reimburse a franchisee's damages and expenses if they incur costs from a trademark infringement proceeding. This reimbursement is conditional upon several factors.
First, the franchisee's use of the trademark must be authorized and consistent with the franchise agreement, the operations manual, and the brand standards communicated by 7 Brew. Second, the franchisee must promptly notify 7 Brew of the infringement proceeding. Finally, the franchisee must comply with 7 Brew's directions in responding to the proceeding.
7 Brew also retains the option to defend and control the defense of any proceeding arising from the franchisee's use of any mark under the franchise agreement, either directly or through its affiliates. This clause protects franchisees from trademark disputes, provided they adhere to 7 Brew's guidelines and promptly involve 7 Brew in any legal matters concerning trademark usage.