Under what conditions will Beard Papas protect a franchisee's right to use the Licensed Marks?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 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.
If any third party establishes, to our satisfaction and in our discretion that its rights to the Licensed Marks are, for any legal reason, superior to any of our rights or of a nature that we believe, in our discretion, that it is advisable to discontinue and/or modify the Licensed Marks, then we will modify and/or replace the Licensed Marks and you must use the substitutions, replacements and/or variations of and/or to the Licensed Marks and use the those trademarks, service marks, logos and trade names required and designated by us. In such event, our sole liability and obligation will be to reimburse you for the direct out-of-pocket costs of complying with this obligation, which you must document to our satisfaction, including, by way of example, alterations in signage and replacement of marketing materials.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, Beard Papas will protect a franchisee's right to use the Licensed Marks if the franchisee uses the Licensed Marks in accordance with the terms of the Franchise Agreement, as designated in the Manuals, and as otherwise instructed by Beard Papas. This protection extends to claims of infringement and unfair competition related to the Licensed Marks.
Beard Papas will indemnify a franchisee against direct damages for trademark infringement arising from the franchisee's use of the Licensed Marks, provided that the franchisee's use complies with the Franchise Agreement, the Manuals, and Beard Papas's written instructions. To receive indemnification, the franchisee must also promptly notify Beard Papas of the claim, give Beard Papas sole control over the defense and settlement, and remain in compliance with the Franchise Agreement and any applicable Multi-Unit Development Agreement. However, Beard Papas is not obligated to cover the fees or disbursements of any attorney retained by the franchisee if Beard Papas defends the claim.
If a third party successfully demonstrates superior rights to the Licensed Marks, Beard Papas may modify or replace the Licensed Marks. In such cases, the franchisee must use the substituted or modified marks as required by Beard Papas. Beard Papas's sole obligation in this event is to reimburse the franchisee for direct out-of-pocket costs of complying with the change, such as alterations to signage and replacement of marketing materials, provided the franchisee documents these costs to Beard Papas's satisfaction.