What must a Beggars Pizza franchisee do if they suspect unauthorized use of the Proprietary Marks?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us of any suspected unauthorized use of the Proprietary Marks, any challenge to the validity of the Proprietary Marks, or any challenge to our ownership of or right to use and to license others to use the Proprietary Marks. We have the sole right to direct and control any administrative proceeding or litigation involving the Proprietary Marks including any settlement. We have the right, but not the obligation, to take action against uses by others that may constitute infringement of the Proprietary Marks. We will defend you against any third-party claim, suit, or demand arising out of your use of the Proprietary Marks in strict compliance with the Manuals. If we determine that you have used the Proprietary Marks in accordance with your Franchise Agreement in our sole discretion, we will bear the cost of your defense including the cost of any judgment or settlement; however, if we determine in our sole discretion that you have not used the Proprietary Marks in accordance with your Franchise Agreement, the cost of your defense will be your responsibility including the cost of any judgment or settlement. In any
litigation relating to your use of the Proprietary Marks, you must sign all documents and do such acts as we may require to carry out your defense or prosecution, including becoming a nominal party to any legal action. We will reimburse you for your out-of-pocket expenses for these acts except to the extent that the litigation is the result of your use of the Proprietary Marks in a manner inconsistent with the terms of your Franchise Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 28–30)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee must promptly notify Beggars Pizza of any suspected unauthorized use of the Proprietary Marks. This also applies to any challenge to the validity of the Proprietary Marks, or any challenge to Beggars Pizza's ownership or right to use and license the marks. Beggars Pizza retains the sole right to direct and control any administrative proceeding or litigation involving the Proprietary Marks, including any settlement decisions. While Beggars Pizza has the right to take action against infringement, they are not obligated to do so.
Beggars Pizza will defend a franchisee against third-party claims arising from the franchisee's use of the Proprietary Marks, provided that the franchisee has strictly complied with the operational manuals. If Beggars Pizza determines that the franchisee has used the Proprietary Marks according to the Franchise Agreement, Beggars Pizza will cover the costs of the defense, including judgments or settlements. However, if Beggars Pizza determines the franchisee did not adhere to the Franchise Agreement, the franchisee will be responsible for all defense costs, judgments, and settlements.
In any litigation related to the use of Proprietary Marks, the franchisee must sign all necessary documents and perform required actions to aid in the defense or prosecution, potentially including becoming a nominal party to legal action. Beggars Pizza will reimburse the franchisee for out-of-pocket expenses related to these actions, unless the litigation results from the franchisee's inconsistent use of the Proprietary Marks with the Franchise Agreement. This is a fairly standard clause in franchise agreements, as the franchisor needs to protect its brand and trademarks, but it places the onus on the franchisee to be vigilant and compliant.