Who has the right to control litigation involving the Proprietary Marks of Beggars Pizza?
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, Beggars Pizza retains the sole right to direct and control any administrative proceeding or litigation involving its Proprietary Marks, including any settlement decisions. This means that while a franchisee may be involved in a legal dispute concerning the trademarks, Beggars Pizza has the authority to manage the legal strategy and resolution.
This control extends to actions franchisees must take during litigation. Franchisees are required to sign documents and perform acts necessary for their defense or prosecution as directed by Beggars Pizza, potentially including becoming a nominal party in legal actions. Beggars Pizza will cover a franchisee's out-of-pocket expenses for these actions, unless the litigation arises from the franchisee's use of the Proprietary Marks in a way that violates the Franchise Agreement.
Beggars Pizza also has the right, but not the obligation, to take action against uses by others that may infringe upon its Proprietary Marks. This means that Beggars Pizza can choose whether or not to pursue legal action against third parties who are potentially misusing their trademarks. Beggars Pizza will defend a franchisee against third-party claims arising from the franchisee's compliant use of the Proprietary Marks according to the manuals. If Beggars Pizza determines that the franchisee has used the Proprietary Marks according to the Franchise Agreement, Beggars Pizza will bear the cost of the defense, including judgments or settlements. However, if the franchisee's use is not in accordance with the Franchise Agreement, the franchisee will be responsible for these costs.
This arrangement is typical in franchising, as it allows the franchisor to protect the brand's trademarks consistently across all franchise locations. It is important for prospective franchisees to understand that while they are required to use the Proprietary Marks in their business operations, Beggars Pizza maintains ultimate control over how these marks are defended and protected in legal settings.