What are the conditions that must be met for a Bee Organized franchisee to receive indemnification for trademark infringement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
We will protect your right to use the Licensed Marks and other related rights and 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. 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.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized will protect a franchisee's right to use the Licensed Marks and defend against infringement claims if the franchisee meets certain conditions. Specifically, Bee Organized will indemnify a franchisee against direct damages from trademark infringement claims if the franchisee's use of the Licensed Marks complies with the terms outlined in the Franchise Agreement, the Manuals, and any written instructions provided by Bee Organized.
To receive indemnification, the franchisee must also promptly notify Bee Organized of any trademark infringement claim. Furthermore, the franchisee must allow Bee Organized to have sole control over the defense and settlement of the claim. Finally, the franchisee must be in full compliance with the Franchise Agreement at the time of the claim.
If Bee Organized defends the claim, it is not obligated to cover the fees or disbursements of any attorney retained by the franchisee. These conditions are fairly typical in franchising, as franchisors need to maintain control over trademark-related legal matters to protect the overall brand. Franchisees should carefully review the Franchise Agreement and Manuals to ensure they understand how to properly use the Licensed Marks and what steps to take in case of a potential infringement claim.