What must a Baya Bar franchisee do if they notice an infringement of the Marks?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
sch intends to file all affidavits and other documents required to maintain his interest in and to the Marks.
You must immediately notify us of any apparent infringement of the Marks or challenge to your use of any of the Marks or claim by any person of any rights in any of the Marks. You are not permitted to communicate with any person other than us, or any designated affiliate, our counsel and your counsel involving any infringement, challenge or claim. We can take action and have the right to exclusively control any litigation or USPTO or other administrative or agency proceeding caused by any infringement, challenge or claim or otherwise relating to any of the Marks. You must sign any and all documents, and do what may, in our counsel's opinion, be necessary or advisable to protect our interests in any litigation or USPTO or other administrative or agency proceeding or to otherwise protect and maintain our interests and the interests of any other person or entity (including any affiliate) having an interest in the Marks.
We will indemnify you against and reimburse you for all damages for which you are held liable for your use of any of the Marks, provided that your conduct in the proceeding and use of the Marks is in full compliance with the terms of the Franchise Agreement.
Except as provided above, we are not obligated by the Franchise Agreement to protect any rights granted to you to use the Marks or to protect you against claims of infringement or unfair competition with respect to them. Although we are not contractually obligated to protect the Marks or your right to use them, as a matter of corporate policy we intend to defend the Marks vigorously.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding the brand's trademarks. If a franchisee observes any potential infringement of Baya Bar's trademarks, they are required to immediately notify Baya Bar. This ensures that the franchisor is promptly informed of any unauthorized use or challenge to the brand's intellectual property.
Furthermore, the franchisee is restricted from communicating with any party other than Baya Bar, its designated affiliates, or their respective legal counsel regarding the infringement, challenge, or claim. This measure centralizes the handling of such issues with the franchisor, allowing for a coordinated and strategic response. Baya Bar retains the exclusive right to control any litigation or proceedings before the U.S. Patent and Trademark Office (USPTO) or other administrative bodies related to the trademarks.
To support Baya Bar's efforts to protect its trademarks, franchisees must sign any documents and take actions deemed necessary by the franchisor's counsel. This may include providing evidence, affidavits, or other forms of cooperation to protect the brand's interests. While Baya Bar intends to vigorously defend its trademarks as a matter of corporate policy, the Franchise Agreement does not obligate them to protect the franchisee against claims of infringement or unfair competition, except for indemnification against damages the franchisee is held liable for when the franchisee's conduct and use of the marks is compliant with the Franchise Agreement.
In summary, Baya Bar franchisees play a crucial role in safeguarding the brand's trademarks by promptly reporting any suspected infringement and cooperating with the franchisor in legal or administrative proceedings. This collaborative approach helps maintain the integrity and value of the Baya Bar brand.