Is a B Bops franchisee required to notify the Company of any challenge to their use of 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 immediately notify the company in writing of any challenge to their use of the Licensed Marks. This requirement is part of the Franchise Agreement, emphasizing the importance B Bops places on protecting its trademarks. Franchisees must also report any claim by a third party to rights in the Licensed Marks or any apparent infringement of the Licensed Marks that comes to their attention.
This notification requirement ensures that B Bops is promptly informed of any potential threats to its brand and intellectual property. Upon receiving such notification, B Bops has absolute discretion in deciding what action to take. The franchisee is required to cooperate with B Bops in investigating, prosecuting, or defending any action involving the Licensed Marks, but the company bears the sole expense of these activities.
B Bops considers its Licensed Marks valuable and intends to protect them against infringement. The Franchise Agreement also obligates B Bops to indemnify franchisees against claims of infringement or unfair competition related to their use of the Licensed Marks, provided the franchisee has complied with the terms of the Franchise Agreement. B Bops retains exclusive control over any administrative or legal proceedings related to the Licensed Marks. This comprehensive approach to trademark protection benefits both the franchisor and the franchisee by safeguarding the brand's reputation and market position.