What must a Bang Cookies franchisee do to be indemnified against trademark infringement claims?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
We will protect your right to use the Licensed Marks and other related rights and to protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and, otherwise, as we instruct you. We will indemnify you against direct damages for trademark infringement in a proceeding arising out of your use of the Licensed Marks, provided your use of the Licensed Marks comply with the terms of your Franchise Agreement, the Manuals, our written instructions and, that you have timely notified us of the claim, have given us sole control of the defense and settlement of the claim, and you are in compliance with your Franchise Agreement and, if applicable, Multi-Unit Development Agreement. If we defend the claim, we have no obligation to indemnify or reimburse you with respect to any fees or disbursements of any attorney that you retain.
Source: Item 13 — TRADEMARKS (FDD pages 38–39)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Bang Cookies will protect a franchisee's right to use the licensed marks and related rights, including defending against infringement claims. However, this protection is conditional. To be indemnified against direct damages for trademark infringement, a Bang Cookies franchisee must adhere to several requirements.
First, the franchisee's use of the licensed marks must comply with the terms outlined in the Franchise Agreement, the Manuals, and any written instructions provided by Bang Cookies. Second, the franchisee must promptly notify Bang Cookies of any trademark infringement claim. Third, the franchisee must grant Bang Cookies sole control over the defense and settlement of the claim. Finally, the franchisee must be in full compliance with both the Franchise Agreement and, if applicable, any Multi-Unit Development Agreement.
It's important to note that if Bang Cookies chooses to defend the claim, they are not obligated to cover the fees or disbursements of any attorney independently retained by the franchisee. This means that while Bang Cookies will handle the legal defense, the franchisee will be responsible for their own legal costs if they choose to hire separate counsel. By adhering to these conditions, a Bang Cookies franchisee can ensure they are protected against trademark infringement claims arising from their use of the licensed marks.