Who has the sole right to control litigation involving the Proprietary Marks for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor has the sole right to direct and control any administrative proceeding or litigation involving the Proprietary Marks including any settlement.
Franchisor has the right, but not the obligation, to take action against uses by others that may constitute infringement of the Proprietary Marks.
Franchisor will defend Franchisee against any third-party claim, suit, or demand arising out of Franchisee's use of the Proprietary Marks.
If Franchisor, in its sole discretion, determines that Franchisee has used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisor.
If Franchisor, in its sole discretion, determines that Franchisee has not used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisee.
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 the 2025 Beggars Pizza Franchise Disclosure Document, Beggars Pizza has the sole right to direct and control any administrative proceeding or litigation involving the Proprietary Marks, including any settlement. This means that Beggars Pizza, not the franchisee, has the authority to make all decisions regarding legal matters related to the brand's trademarks.
This provision is typical in franchising, as franchisors need to protect their brand's trademarks uniformly. The franchisee must promptly notify Beggars Pizza of any suspected unauthorized use or challenges to the validity or ownership of the Proprietary Marks. Beggars Pizza has the right, but not the obligation, to take action against uses by others that may constitute infringement of the Proprietary Marks.
Beggars Pizza will defend the franchisee against third-party claims arising from the franchisee's use of the Proprietary Marks, provided the franchisee has used the marks in accordance with the franchise agreement. If Beggars Pizza determines the franchisee did not use the Proprietary Marks correctly, the franchisee will bear the cost of the defense, including judgments or settlements. The franchisee must also execute any documents and perform acts necessary to carry out the defense or prosecution as directed by Beggars Pizza, even becoming a nominal party to legal action if required. Beggars Pizza will reimburse the franchisee's out-of-pocket costs for these actions, unless the litigation results from the franchisee's inconsistent use of the Proprietary Marks with the terms of the agreement.