What must a Belocal franchisee do if there is a claim by any person of any rights in any of the Copyrighted Materials?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us of any infringement of the Copyrighted Materials or of any challenge to your use of any of the Copyrighted Materials or claim by any person of any rights in any of the Copyrighted Materials. You and your Principals must agree not to communicate with any person other than us, any designated affiliate, and our or their counsel about any infringement, challenge, or claim of this type. We or our affiliates have sole discretion (but not the obligation) to take any action we deem appropriate and the right to exclusively control any litigation, or U.S. Copyright Office (or other) proceeding, arising out of any alleged infringement, challenge, or claim concerning any of the Copyrighted Materials. You must execute all instruments and documents and give us any assistance that, in our counsel's opinion, may be necessary or advisable to protect and maintain our interests or those of our affiliates in any litigation or proceeding of this type or to otherwise protect and maintain our or their interests in the Copyrighted Materials. We and our affiliates may, in our sole discretion, modify or discontinue use of the Copyrighted Materials or other confidential information and/or use other information and/or rights in their place. If we decide to modify or discontinue use of any of the Copyrighted Materials or other confidential information for any reason, you must do the same, at your expense.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 46–47)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee faces a claim by any person regarding rights in Belocal's Copyrighted Materials, the franchisee must immediately notify Belocal. The franchisee and their Principals must agree to communicate only with Belocal, its designated affiliates, or their counsel regarding the claim.
Belocal or its affiliates have the sole discretion, but not the obligation, to take any action they deem appropriate and have the right to exclusively control any litigation or U.S. Copyright Office proceeding arising from the claim. The franchisee is required to execute all necessary documents and provide any assistance that Belocal's counsel deems necessary to protect Belocal's interests in any litigation or proceeding.
Belocal may modify or discontinue the use of the Copyrighted Materials, and if they do so, the franchisee must also do the same at their own expense. This means a franchisee could incur costs to change materials or processes if Belocal decides to update or discontinue certain copyrighted materials.
This clause is fairly standard in franchising, as franchisors typically want to maintain control over their intellectual property and legal defense. However, it's important for a prospective Belocal franchisee to understand that they are responsible for the costs associated with changes to copyrighted materials and have no control over the legal strategy related to any claims.