Who bears the cost of defending or settling an infringement claim related to the Angry Chickz Marks?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
any of the Marks or the goodwill attributable to the Marks. Franchisee is granted only a license during the Term to display and use the Marks according to the terms and conditions of this Agreement. All goodwill accrued by, and due to, Franchisee's use of the Marks anywhere shall be the sole and exclusive property of Company.
11.4 Defense of Marks; Prosecution of Infringers.
11.4.1 If Franchisee receives notice, or is otherwise informed, of any claim, suit or demand against Franchisee of any alleged infringement, unfair competition or similar matter on account of its use of the Marks or trade dress, Franchisee shall promptly notify Company of the same. Company shall take such action as it may deem necessary and appropriate to protect and defend Franchisee against any such claim, but Company shall not be obligated to take any such action, however. Franchisee shall not settle or compromise any claim by a third party without the prior written consent of Company. Company shall have the sole right to defend, compromise or settle any claim, in its discretion, at Company's sole cost and expense, using attorneys of its own choosing.
- 11.4.2 If Franchisee receives notice or learns that any unauthorized third party is using Company's trade dress or Marks or something similar, Franchisee shall promptly notify Company. Company shall then determine whether or not it wishes to take any action against such third person. Franchisee shall have no right to make any demand against any alleged infringer or to prosecute any claim of any kind or nature whatsoever against any alleged infringer for or on account of such infringement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz has the sole right to defend, compromise, or settle any claim related to infringement of its trademarks (the "Marks"). Angry Chickz will handle this at its sole cost and expense, using attorneys of its choosing.
If a franchisee receives notice of any claim, suit, or demand against them regarding alleged infringement or unfair competition related to the Angry Chickz Marks or trade dress, the franchisee must promptly notify Angry Chickz. While Angry Chickz will take action it deems necessary to defend the franchisee, it is not obligated to take any action. The franchisee cannot settle any claim by a third party without Angry Chickz's prior written consent.
The franchisee may participate in the defense or settlement at their own expense, but Angry Chickz's decisions regarding the claim's disposition are final. The franchisee must sign documents and take actions necessary to protect Angry Chickz's interests in any litigation or Patent and Trademark office proceeding. Franchisees also agree not to communicate with anyone other than Angry Chickz, its licensor, and their respective attorneys regarding any infringement, challenge, or claim.