factual

What must an Angry Chickz franchisee do to protect the company's interest in litigation related to the Marks?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

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, a franchisee is required to take certain actions to protect the company's interests in any litigation related to its trademarks (the Marks). Specifically, the franchisee must sign any documents and take any other reasonable actions that Angry Chickz's attorneys deem necessary or advisable to protect and maintain Angry Chickz's interests in any litigation, Patent and Trademark office, or other proceeding. This obligation extends to protecting Angry Chickz's interest in the Marks.

While the franchisee may participate in the defense or settlement of a claim at their own expense, Angry Chickz retains the final decision-making authority regarding the disposition of the claim. This means that even if a franchisee invests their own money in the legal proceedings, Angry Chickz has the ultimate say in how the matter is resolved. The franchisee also agrees not to communicate with any person or entity other than Angry Chickz, its licensor, their respective attorneys, and the franchisee's attorneys regarding any infringement, challenge, or claim related to the Marks. This restriction ensures that all communications are controlled and coordinated by Angry Chickz and its legal counsel.

These stipulations are fairly standard in franchising, as franchisors need to maintain tight control over their brand and trademarks. By requiring franchisees to cooperate in legal matters and limiting their communication, Angry Chickz aims to protect the integrity and value of its Marks. A prospective franchisee should understand that they will have limited autonomy in any legal disputes involving the Angry Chickz trademarks and must be prepared to follow the franchisor's instructions and guidance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.