Can a franchisee or its principals contest Augusta Lawn Care's ownership of the Marks?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall notify Augusta Lawn Care immediately when you learn about an infringement or challenge to your use of any Mark, including the Augusta Lawn Care mark. Augusta Lawn Care will take the action Augusta Lawn Care deems appropriate in any such situation. Augusta Lawn Care has exclusive control over any proceeding or settlement concerning any of the Marks. You must take all actions that, in the opinion of Augusta Lawn Care's counsel, may be advisable to protect and maintain Augusta Lawn Care's interests in any proceeding or to otherwise protect and maintain Augusta Lawn Care's interests in the Mark. While Augusta Lawn Care is not required to defend you against a claim arising from your use of any of the Marks, Augusta Lawn Care will indemnify and hold you harmless from all of your expenses reasonably incurred in any legal proceeding disputing your authorized use of any Mark provided that (a) your use is and has been in accordance with the terms of this Agreement and such other terms as may be specified by Augusta Lawn Care; and (b) you notify us of the proceeding or alleged infringement in a timely manner and you have complied with Augusta Lawn Care's directions regarding the proceeding. Augusta Lawn Care has the right to control the defense and settlement of any proceeding. Augusta Lawn Care will not reimburse you for your expenses and legal fees for separate, independent legal counsel, or for expenses in removing signage or discontinuing your use of any Mark. Augusta Lawn Care will not reimburse you for disputes where Augusta Lawn Care and/or any of its parents, affiliates, successors or assigns challenges your use of a Mark.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, a franchisee must notify Augusta Lawn Care immediately if they learn of any infringement or challenge to the use of any Mark, including the Augusta Lawn Care mark. Augusta Lawn Care has exclusive control over any proceeding or settlement concerning any of the Marks. The franchisee must take all actions that Augusta Lawn Care's counsel deems advisable to protect and maintain Augusta Lawn Care's interests in any proceeding or to otherwise protect and maintain Augusta Lawn Care's interests in the Mark.
While Augusta Lawn Care is not required to defend a franchisee against a claim arising from the use of any of the Marks, Augusta Lawn Care will indemnify and hold the franchisee harmless from all expenses reasonably incurred in any legal proceeding disputing the franchisee's authorized use of any Mark provided that the franchisee's use is and has been in accordance with the terms of the Franchise Agreement and such other terms as may be specified by Augusta Lawn Care, and the franchisee notifies Augusta Lawn Care of the proceeding or alleged infringement in a timely manner and has complied with Augusta Lawn Care's directions regarding the proceeding. Augusta Lawn Care has the right to control the defense and settlement of any proceeding.
Augusta Lawn Care will not reimburse a franchisee for their expenses and legal fees for separate, independent legal counsel, or for expenses in removing signage or discontinuing their use of any Mark. Augusta Lawn Care will not reimburse a franchisee for disputes where Augusta Lawn Care and/or any of its parents, affiliates, successors or assigns challenges the franchisee's use of a Mark. This means that while franchisees are expected to protect Augusta Lawn Care's trademarks, they have limited control over legal proceedings and will not be compensated for independent legal actions or disputes against Augusta Lawn Care itself.