What is the scope of Bath Tune Up's indemnity to franchisees regarding claims of infringement or misappropriation?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
We will defend you against any claim against you because of your authorized use of our Marks or any judgment resulting from a claim, suit or demand arising from your use of the Marks according to the terms of the franchise agreement except a claim by a prior user of the name "BATH TUNE-UP®".
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 37)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, Bath Tune Up will defend a franchisee against claims arising from the franchisee's authorized use of Bath Tune Up's marks. This defense extends to any judgment resulting from such a claim, suit, or demand, provided the use of the marks aligns with the franchise agreement terms.
However, this protection does not extend to claims made by prior users of the "BATH TUNE-UP®" name. The FDD notes that Bath Tune Up has advised franchisees that other entities may have used the name before Bath Tune Up registered its mark, and these prior users may retain the legal right to continue using the name in their established geographical areas.
The document emphasizes that franchisees are responsible for determining whether the name "BATH TUNE-UP®" is already in use within their territory before signing the agreement. By entering the franchise agreement, the franchisee waives any claim against Bath Tune Up for damages or losses resulting from prior use of the name by others, except for obligations under Section 6.6 of the agreement.