Who has the right to control any settlement, litigation, or proceeding arising out of alleged infringement of the Marks related to the Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Company in connection with the enforcement of this Section, including payment of all expenses for obtaining specific performance of, or an injunction against violation of, the requirements of this Section.
B. Franchisee shall notify Company immediately by telephone, and thereafter in writing, of any apparent infringement of or challenge to Franchisee's use of any of the Marks or of any claim by any person of any rights in any of the Marks. Company shall have the right to take such action as it deems appropriate in connection with the foregoing, including the right to control any settlement, litigation or proceeding arising out of any such alleged infringement, challenge or claim or otherwise relating to any of the Marks.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus retains the right to control any settlement, litigation, or proceeding arising out of alleged infringement, challenge, or claim relating to any of the Marks.
This means that as an Aerus franchisee, you are required to notify Aerus immediately if you become aware of any potential infringement or challenges to the use of the Aerus Marks. Aerus then has the authority to take whatever action it deems appropriate to protect its Marks. This includes the right to manage any legal proceedings or settlements related to these issues.
This is a fairly standard clause in franchise agreements, as franchisors need to protect their trademarks. The franchisee is obligated to assist Aerus by executing documents and providing assistance as needed to protect and maintain Aerus's rights to the Marks. For Franchised Businesses located in the State of Minnesota, Aerus will protect Franchisee's right to use the Marks or indemnify Franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the Marks, provided that Franchisee is using the Marks as provided in the Manuals or as otherwise required by Company or by its Affiliates.