What must a Belocal franchisee do if there is an apparent 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 must immediately notify Belocal if they become aware of any potential infringement or challenges to their use of any Mark or Copyrighted Material. This includes any claims from others regarding rights to any Mark or Copyrighted Materials.
Furthermore, the franchisee and its principals are restricted from communicating with anyone other than Belocal, its affiliates, their legal counsel, and the franchisee's own counsel regarding such infringements, challenges, or claims. This ensures that Belocal maintains control over the legal strategy and messaging related to the brand's intellectual property.
Belocal retains complete discretion to take any action it deems appropriate concerning infringements, challenges, or claims 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 these issues. The franchisee is obligated to execute documents, provide assistance, and perform actions deemed necessary by Belocal to protect its interests in the Marks or Copyrighted Materials. This places the responsibility and authority for managing intellectual property protection firmly with Belocal, while requiring the franchisee's cooperation.