Does Alloy have an obligation to take action against infringement of the Alloy Trademarks?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
llenge or claim arising out of your use of any Trademark. We or our Affiliate have the sole right to direct and control any administrative proceeding or litigation involving the Trademarks, including any settlement. We or our Affiliate have the right, but not the obligation, to take action against uses by others that may constitute infringement of the Trademarks. We or our Affiliate may defend you against any thirdparty claim, suit or demand arising out of your use of the Trademarks. If we or our Affiliate determine that you have used the Trademarks in accordance with this Agreement, the cost of the defense, including the cost of any judgment or settlement, will be borne by us or our Affiliate. If we or our Affiliate determine that you have not used the Trademarks in accordance with this Agreement, the cost of the defense, including the cost of any judgment or settlement, will be yours.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy has the right, but not the obligation, to take action against the infringement of its trademarks. While Alloy is not obligated to act, franchisees must promptly notify Alloy of any known trademark infringements or challenges to the use or ownership of the trademarks.
Alloy retains sole authority to manage any administrative or legal proceedings related to the trademarks, including settlements. This means that while franchisees are responsible for reporting potential infringements, Alloy decides whether or not to pursue legal action.
If a third party brings a claim against a franchisee for their use of Alloy's trademarks, Alloy has the right to defend the franchisee. If Alloy determines the franchisee used the trademarks according to the franchise agreement, Alloy will cover the costs of the defense, including any judgments or settlements. However, if Alloy determines the franchisee misused the trademarks, the franchisee will be responsible for all defense costs.