Must Beem Light Sauna franchisees immediately notify the franchisor of any infringement of the 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.
If we decide that you should modify or discontinue using any of the Marks, or use one or more additional or substitute service marks or trademarks, you must comply with our directions in the time that we reasonably specify, and neither we nor any of its affiliates will have any obligation to reimburse you for the cost of complying with our directions.
Source: Item 13 — TRADEMARKS (FDD pages 51–52)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees have a responsibility to protect the brand's trademarks. Specifically, if a franchisee becomes aware of any infringement or challenges to their use of Beem Light Sauna's trademarks, they must notify the franchisor immediately. This obligation ensures that Beem Light Sauna can take appropriate action to protect its brand and intellectual property.
This requirement is fairly standard in franchising, as franchisors rely on their franchisees to be vigilant in protecting the brand's trademarks at the local level. By promptly reporting any potential infringement, Beem Light Sauna franchisees enable the franchisor to take swift action, such as pursuing legal remedies or issuing cease and desist letters. The FDD states that Beem Light Sauna has the right to take any action it deems appropriate to protect the marks, but is not required to take any action.
Beem Light Sauna retains control over any administrative or legal proceedings related to the trademarks and is entitled to all proceeds, damages, and attorney's fees recovered from such actions. Franchisees are obligated to assist Beem Light Sauna by executing necessary documents and providing support in these proceedings. This arrangement underscores the franchisor's ultimate authority and responsibility for managing and protecting the brand's intellectual property.
Furthermore, Beem Light Sauna reserves the right to direct franchisees to modify or discontinue the use of any trademark or to adopt new trademarks. Franchisees must comply with these directives within a reasonable timeframe, and Beem Light Sauna is not obligated to reimburse franchisees for any costs incurred in complying with these changes. This provision highlights the potential for changes to the brand's trademarks and the franchisee's responsibility to adapt accordingly at their own expense.