With whom can a Belocal franchisee communicate regarding an infringement of a Mark or Copyrighted Material?
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee who discovers a potential infringement or challenge to the use of any Mark or Copyrighted Material must immediately notify Belocal. The franchisee is then restricted in who they can discuss the matter with.
Specifically, the franchisee and their principals are only allowed to communicate with Belocal, its affiliates, their legal counsel, and the franchisee's own legal counsel regarding the potential infringement, challenge, or claim. This restriction ensures that Belocal maintains control over the response to any intellectual property issues and can coordinate a consistent legal strategy.
Belocal retains complete discretion to take any action it deems appropriate regarding any infringement, challenge, or claim to any Mark or Copyrighted Materials. This includes the exclusive right to control or delegate control of any settlement, litigation, or other proceedings related to intellectual property matters. The franchisee is obligated to assist Belocal by executing documents and providing necessary support to protect Belocal's interests in the Marks or Copyrighted Materials. This is a fairly standard clause in franchise agreements, as the franchisor needs to protect its brand and intellectual property consistently across all franchise locations.