Is a B Bops franchisee required to cooperate with the Company in investigating any action involving the Licensed Marks?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Unauthorized Use and Protection of Franchisee. You are obligated under the Franchise Agreement to immediately notify the Company in writing of any of the following: (i) any challenge to your use of the Licensed Marks; (ii) any claim by a third party to rights in any of the
Licensed Marks (or confusingly similar marks) that comes to your attention; and (iii) any apparent infringement of the Licensed Marks that comes to your attention. The Company has absolute discretion in taking such action as it may deem appropriate upon notification of any such challenge, claim or infringement. You are required to cooperate with the Company and its affiliates in investigating, prosecuting or defending any action involving any of the Licensed Marks, but at the sole expense of the Company. Although not expressly obligated by the Franchise Agreement, the Company considers the Licensed Marks to be valuable property rights and intends to protect them against infringement by others. The Franchise Agreement obligates the Company to indemnify you against claims of infringement or unfair competition with respect to your use of the Licensed Marks, provided that you have complied with the material terms and conditions of the Franchise Agreement in using the Licensed Marks. The Company will have exclusive control over any administrative proceeding or litigation initiated in connection with any of the Licensed Marks. In the event the Franchise Agreement is terminated for any reason whatsoever or expires without renewal, the Company has the right to prohibit you from further use or display of the Licensed Marks.
Source: Item 13 — TRADEMARKS (FDD pages 35–37)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees are obligated to cooperate with B Bops and its affiliates in the investigation, prosecution, or defense of any action involving the licensed marks. However, the FDD specifies that these actions will be at the sole expense of B Bops. Franchisees are also required to notify B Bops immediately in writing of any challenges to the use of licensed marks, any third-party claims to rights in the licensed marks, or any apparent infringement of the licensed marks.
This obligation to cooperate is a standard practice in franchising, as franchisors need to protect their trademarks. B Bops retains absolute discretion in deciding what action to take upon notification of any challenge, claim, or infringement. While franchisees must cooperate, B Bops bears the financial responsibility for these legal actions.
B Bops also states that it considers its licensed marks to be valuable property rights and intends to protect them against infringement. The Franchise Agreement obligates B Bops to indemnify franchisees against claims of infringement or unfair competition related to the use of licensed marks, provided the franchisee has complied with the terms and conditions of the Franchise Agreement. B Bops maintains exclusive control over any administrative or legal proceedings related to the licensed marks.
Upon termination or expiration of the Franchise Agreement, B Bops has the right to prohibit the franchisee from further use or display of the licensed marks. This is a common clause in franchise agreements to protect the brand's integrity and prevent unauthorized use of its trademarks.