What must a Beggars Pizza franchisee do if litigation arises relating to their use of the Proprietary Marks?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If any litigation relating to Franchisee's use of the Proprietary Marks arises, Franchisee must execute any documents and perform such acts as may be necessary to carry out such defense or prosecution in Franchisor's sole opinion including, without limitation, becoming a nominal party to any legal action.
Except to the extent that such litigation is the result of Franchisee's use of the Proprietary Marks in a manner inconsistent with the terms of the Agreement, Franchisor will reimburse Franchisee for its out-of-pocket costs in doing such acts; and
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, if any litigation arises relating to a franchisee's use of the Proprietary Marks, the franchisee must execute any documents and perform any acts necessary to carry out the defense or prosecution of the litigation, as determined solely by Beggars Pizza. This includes becoming a nominal party to any legal action.
Beggars Pizza will cover the franchisee's out-of-pocket costs for performing these actions, unless the litigation results from the franchisee using the Proprietary Marks in a manner inconsistent with the franchise agreement. In that case, the franchisee will bear the costs.
This means that a Beggars Pizza franchisee may be required to participate in legal proceedings related to the brand's trademarks. While Beggars Pizza will generally cover the costs, franchisees need to be aware that they could be responsible for legal expenses if they misuse the trademarks. This clause ensures that Beggars Pizza maintains control over its brand and can enforce its trademark rights effectively, while also protecting franchisees who use the marks correctly.