Who has the right to defend or settle an infringement claim related to the Angry Chickz Marks?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains the sole right to defend, compromise, or settle any claim related to the use of its trademarks (the "Marks"). This means that if a franchisee is faced with a claim of infringement or unfair competition due to their use of the Angry Chickz Marks, the franchisee must promptly notify Angry Chickz.
Angry Chickz has the discretion to take action to defend the franchisee, but they are not obligated to do so. The franchisee is not allowed to settle or compromise any claim made by a third party without Angry Chickz's prior written consent. This protects Angry Chickz's brand and ensures that all legal strategies are aligned with their overall brand protection efforts.
Furthermore, the franchisee has no right to make any demands or prosecute any claims against alleged infringers of the Angry Chickz Marks. If a franchisee notices unauthorized use of the Angry Chickz trade dress or Marks by a third party, they must inform Angry Chickz, who will then decide whether to take action. The franchisee is also required to sign documents and take actions deemed necessary by Angry Chickz's attorneys to protect the company's interest in any legal proceedings related to the Marks. While the franchisee can participate in the defense or settlement at their own expense, Angry Chickz's decisions regarding the claim's disposition are final. This comprehensive control over trademark defense is typical in franchising, as it ensures brand consistency and legal strategy across all franchise locations.