Who is entitled to retain proceeds from litigation related to Beem Light Sauna's Marks?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us if any other person or Entity attempts to use any of the Marks or any colorable imitation of any of the Marks. You must immediately notify us of any infringement of or challenge to your use of any of the Marks. We will have the right to take any action that we deem appropriate, but the Franchise Agreement does not require us to take any action to protect your right to use any of the Marks or to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving any of the Marks. We will have the right to control any administrative proceeding or litigation related to the Marks. We will be entitled to retain any and all proceeds, damages, and other sums, including attorneys' fees, recovered or owed to us or our affiliates in connection with any such action. You agree to execute all documents and, render any other assistance we may deem necessary to any such proceeding or any effort to maintain the continued validity and enforceability of the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 51–52)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna retains the rights to all proceeds from litigation related to its trademarks. This includes any damages, attorney's fees, and other sums that are recovered or owed to Beem Light Sauna or its affiliates in connection with any legal action concerning the Marks.
This means that if there is any legal dispute involving the Beem Light Sauna trademarks, such as infringement, Beem Light Sauna has the right to control the legal proceedings. Even if a franchisee's use of the Marks is challenged, Beem Light Sauna is not obligated to participate in the franchisee's defense or cover their expenses or damages.
Furthermore, franchisees are obligated to assist Beem Light Sauna in these legal matters by executing documents and providing any necessary assistance to maintain the validity and enforceability of the Marks. This arrangement is typical in franchising, as the franchisor needs to protect its brand and trademarks, which are critical assets of the franchise system. The franchisee benefits from the use of the trademarks but must relinquish control and financial benefit from any related litigation to the franchisor.