Does Belocal have discretion regarding actions taken in connection with any infringement of, or challenge or claim to, any Mark or Copyrighted Materials?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must notify Franchisor immediately of any apparent infringement of, or challenge to, Franchisee's use of any Mark or Copyrighted Material and of any claim by any person of any rights in any Mark or any Copyrighted Materials.
Franchisee and Principals must not communicate with any person other than Franchisor, its affiliates, their counsel, and Franchisee's counsel in connection with any such apparent infringement, challenge, or claim.
Franchisor shall have complete discretion to take any action it deems appropriate in connection with any infringement of, or challenge or claim to, any Mark or Copyrighted Materials as well as the right to control exclusively, or to delegate control of, any settlement, litigation, Patent-and-Trademark-Office, or other proceeding arising out of any such alleged infringement, challenge, or claim or otherwise relating to any Mark or Copyrighted Materials.
Franchisee agrees to execute all such instruments and documents, render such assistance, and do such acts or things as may, in the opinion of Franchisor, reasonably be necessary or advisable to protect and maintain the interests of Franchisor or any affiliate in the Marks or Copyrighted Materials.
Neither Franchisor nor any of Franchisor's affiliates shall be required to defend Franchisee against any claim, or indemnify Franchisee against or reimburse Franchisee for any loss or damages, arising out of Franchisee's use or misuse of any Mark, the Copyrighted Materials, or other Confidential Information.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal retains complete discretion to act on infringements, challenges, or claims to any Mark or Copyrighted Materials. As a franchisee, you must immediately notify Belocal of any apparent infringement or challenges to your use of any Mark or Copyrighted Material, or any claims by any person of rights in any Mark or Copyrighted Materials. You are also prohibited from communicating with anyone other than Belocal, its affiliates, their counsel, and your own counsel regarding any potential infringement, challenge, or claim.
Belocal has the exclusive right to control or delegate control of any settlement, litigation, or other proceeding arising out of alleged infringement, challenge, or claim relating to any Mark or Copyrighted Materials. As a franchisee, you must execute all documents, provide assistance, and perform any actions that Belocal deems necessary to protect its interests in the Marks or Copyrighted Materials.
However, Belocal is not required to defend you against any claim or indemnify you for any losses or damages arising from your use or misuse of any Mark, Copyrighted Materials, or other Confidential Information. This means that while Belocal controls the legal strategy, you may be responsible for any costs or damages resulting from your actions. This is a common arrangement in franchising, where the franchisor protects the brand's intellectual property but the franchisee bears the risk of their own misuse.