Who decides whether to pursue a claim against a party infringing on Beauty Bungalows' trademarks?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ayroll taxes. Franchisee will not permit a tax sale, seizure, levy, execution, bankruptcy, assignment of assets for or by creditors, or similar action to occur.
6. MARKS
- 6.01 Marks. Franchisee must only use the Marks in the conduct of the Business as specified in this Agreement. Any unauthorized use of the Marks by Franchisee will constitute a breach of this Agreement and an infringement on Franchisor's rights in and to the Marks. As between Franchisor and Franchisee, Franchisor has a prior and superior claim to the Marks, and Franchisee has no rights in the Marks other than the right to use them in the operation of the Business in compliance with this Agreement.
- 6.02 Authorized Marks.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, the franchisor, Beauty Bungalows Franchising, LLC, retains the primary right to enforce its trademarks. The document states that any unauthorized use of the marks by a franchisee constitutes a breach of the agreement and an infringement on the franchisor's rights.
Specifically, the FDD emphasizes that as between the franchisor and franchisee, the franchisor possesses a prior and superior claim to the trademarks. The franchisee's rights are limited to using the marks solely for operating the Beauty Bungalows business in accordance with the franchise agreement. This means that while franchisees are permitted to use the trademarks under the terms of their agreement, the franchisor maintains ultimate control over the marks and how they are used within the Beauty Bungalows system.
Furthermore, the franchisor retains the right to add, modify, or discontinue any marks used under the system. While the document does not explicitly state who decides whether to pursue a claim against a third party for trademark infringement, the overall context indicates that this decision rests with Beauty Bungalows Franchising, LLC, given their superior claim and control over the trademarks. The franchisor also agrees to indemnify the franchisee for any claims against misuse or infringement of marks.