Under what conditions will Bang Cookies reimburse a franchisee for administrative expenses related to protecting the Licensed Marks?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to provide us with written notice of any claims that you may become aware of respecting the Licensed Marks, including your use of the Licensed Marks and/or any claim associated with a third party's use of a trademark that is identical or confusingly similar to the Licensed Marks. We maintain the exclusive discretion to take any and all actions, or to refrain from any action, that we believe to be appropriate in response to any trademark infringement, challenge or claim. As between us, we possess the sole right to exclusively control any and all litigation, legal proceedings, administrative proceedings and/or settlement(s) involving any actual or alleged infringement, challenge or claim relating to the Licensed Marks. You must sign all documents, instruments and agreements and undertake the actions that we, with
the advice of our legal counsel, determine to be necessary or advisable for the protection and/or maintenance of our interests in the Licensed Marks in any legal proceeding, administrative proceeding or as may be otherwise determined by us. As to the foregoing, we will reimburse you for the reasonable out-of-pocket administrative expenses that you incur and pay in complying with our written instructions.
Source: Item 13 — TRADEMARKS (FDD pages 38–39)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees may be reimbursed for reasonable out-of-pocket administrative expenses related to protecting and maintaining the Licensed Marks. However, this reimbursement is conditional. Bang Cookies will only provide reimbursement if the franchisee incurs these expenses while complying with Bang Cookies's written instructions.
Specifically, if Bang Cookies, with the advice of its legal counsel, determines that certain actions are necessary or advisable for the protection and/or maintenance of its interests in the Licensed Marks, the franchisee is obligated to sign documents, instruments, and agreements, and undertake those actions. It is only when the franchisee follows these instructions that Bang Cookies will consider reimbursing the franchisee for reasonable out-of-pocket administrative expenses.
This arrangement means that franchisees need to carefully document all administrative expenses and ensure they have written instructions from Bang Cookies before incurring these costs if they expect to be reimbursed. It also highlights the importance of franchisees maintaining open communication with Bang Cookies regarding any potential trademark issues or required actions to protect the Licensed Marks.