Who has the sole right to direct and control any litigation involving the Proprietary Marks for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must promptly notify Franchisor of any suspected unauthorized use of the Proprietary Marks, any challenge to the validity of the Proprietary Marks, or any challenge to Franchisor's ownership of, Franchisor's right to use and to license others to use, or Franchisee's right to use, the Proprietary Marks.
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, will make all decisions regarding legal matters related to the brand's trademarks.
This provision is important for prospective franchisees because it clarifies that Beggars Pizza maintains control over its brand identity and legal defense of its trademarks. While franchisees are required to notify Beggars Pizza of any potential infringement or challenges to the trademarks, they do not have the authority to independently pursue legal action. This centralized control helps ensure consistent legal strategies and protects the overall value of the Beggars Pizza brand.
Furthermore, Beggars Pizza will defend a 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 adhere to the agreement, the franchisee will bear the costs of the defense, including judgments or settlements. Franchisees may be required to execute documents or perform acts necessary for the defense or prosecution of litigation, and Beggars Pizza will cover the franchisee's out-of-pocket costs unless the litigation arises from the franchisee's inconsistent use of the Proprietary Marks.