Can an Angry Chickz franchisee participate in the defense or settlement of a claim regarding the Marks?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ee 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.
- 11.5 Modification of Marks.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee may participate in the defense or settlement of a claim regarding the Marks at their own expense. However, Angry Chickz retains the final decision-making authority regarding the disposition of any such claim. This means that while franchisees can be involved, Angry Chickz has the ultimate say in how the claim is handled.
This arrangement allows the franchisee to stay informed and potentially contribute to the defense or settlement process, but it also ensures that Angry Chickz maintains control over its brand and trademarks. The franchisee's participation is limited to bearing their own expenses, and they must adhere to Angry Chickz's decisions. This is a common practice in franchising, where the franchisor needs to protect the uniformity and integrity of the brand.
The FDD also specifies that the franchisee must sign documents and take reasonable actions to protect Angry Chickz's interests in any litigation or proceedings related to the Marks. Additionally, the franchisee is prohibited from communicating with any party other than Angry Chickz, its licensor, and their respective attorneys regarding any infringement, challenge, or claim. This restriction is in place to ensure that all communications are coordinated and consistent with Angry Chickz's legal strategy.
In summary, while Angry Chickz franchisees have the option to participate in the defense or settlement of claims concerning the Marks, their involvement is subject to the franchisor's control and at their own cost. This setup balances the franchisee's interest in protecting their business with Angry Chickz's need to safeguard its brand and trademarks.