What must an Angry Chickz franchisee do if requested by the company to protect the Marks in litigation?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.4.3 Franchisee agrees to sign any documents and take any other reasonable actions that, in the opinion of Company's or its licensor's attorneys, are necessary or advisable to protect and maintain Company's (and its licensor's) interests in any litigation or Patent and Trademark office or other proceeding or otherwise to protect and maintain Company's (and its licensor's) interest in the Marks.
Franchisee may participate at its own expense in such defense or settlement, but Company's decisions with regard to the disposition of a claim shall be final.
Franchisee agrees not to communicate with any person or Entity other than Company and its licensor, their respective attorneys, and Franchisee's attorneys regarding any infringement, challenge or claim.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if litigation arises concerning the company's trademarks ("Marks"), franchisees must sign any documents and take any reasonable actions that Angry Chickz's attorneys deem necessary or advisable to protect the company's interests. This obligation extends to litigation, proceedings at the Patent and Trademark Office, or any other action required to safeguard Angry Chickz's rights to its Marks.
While franchisees may participate in the defense or settlement of a claim at their own expense, Angry Chickz retains the final decision-making authority regarding the claim's disposition. Franchisees also agree not to communicate with any party other than Angry Chickz, its licensor, and their respective attorneys about any infringement, challenge, or claim related to the Marks.
This requirement ensures that Angry Chickz maintains control over the defense of its brand and trademarks, preventing franchisees from taking actions that could potentially harm the company's legal position. It is a standard provision in franchise agreements to protect the franchisor's intellectual property rights. Franchisees should be aware that they must cooperate fully with Angry Chickz in any legal matters concerning the Marks, even if they incur expenses to participate in the defense.