What is the Aw franchisee's obligation regarding notifying Aw of any challenge to their use of any Mark?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately in writing of any apparent infringement of or challenge to your use of any Mark, or any claim by any person of any rights in any Mark or any similar mark and you may not communicate with any person other than us or our attorneys and your attorneys regarding the infringement, challenge or claim. We have sole discretion to take any action we deem appropriate and the right to exclusively control any litigation, PTO proceeding, ICANN Uniform Domain Name Dispute Resolution Policy proceeding or other administrative proceeding arising out of any infringement, challenge or claim to otherwise relating to any Mark. You must sign all instruments and documents, provide assistance and take any action that, in the opinion of our attorneys, may be necessary or advisable to protect and maintain our interest in any litigation, PTO proceeding, ICANN Uniform Domain Name Dispute Resolution Policy proceeding or other administrative proceeding or to otherwise protect and maintain our interest in the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 30–32)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees have a responsibility to immediately inform Aw in writing about any potential infringement or challenges to their use of Aw's trademarks. This includes any claims from others regarding rights to the Marks or similar marks. The franchisee is restricted from communicating with anyone other than Aw, their attorneys, or the franchisee's own attorneys about the issue. This ensures Aw maintains control over the legal defense of its trademarks.
Aw retains the sole discretion to take any action they deem necessary to address the infringement, challenge, or claim. This includes the right to control any litigation, PTO (Patent and Trademark Office) proceedings, ICANN (Internet Corporation for Assigned Names and Numbers) proceedings, or other administrative actions related to the Marks. The franchisee is obligated to assist Aw by signing documents and taking actions deemed necessary by Aw's attorneys to protect Aw's interest in the Marks.
This requirement is typical in franchising, as franchisors need to protect their brand's trademarks. By mandating immediate notification and control over legal proceedings, Aw aims to ensure consistent and effective defense of its Marks. This also prevents franchisees from taking actions that could potentially harm the brand's legal position. Franchisees should understand that while they are responsible for reporting issues, Aw assumes the responsibility and cost of defending the Marks, as outlined in Item 13 of the FDD.