What is a Belocal franchisee's required action upon discovering any infringement of the Marks?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us of any infringement of the Marks or of any challenge to the use of any of the Marks or claim by any person of any rights in any of the Marks. 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 Patent and Trademark Office (or other) proceeding, arising out of any alleged infringement, challenge, or claim concerning any of the Marks. 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
Source: Item 13 — TRADEMARKS (FDD pages 44–46)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if a franchisee discovers any infringement of Belocal's trademarks, they must immediately notify Belocal. Furthermore, the franchisee and their principals must not communicate with anyone other than Belocal, any designated affiliate, or their counsel regarding the infringement.
Belocal or its affiliates have the sole discretion, but not the obligation, to take any action they deem appropriate. They also have the exclusive right to control any litigation or proceedings arising from the alleged infringement. 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.
This means that while Belocal retains control over how trademark infringements are handled, franchisees play a crucial role in identifying and reporting potential issues. However, Belocal is not obligated to take any action. This places the responsibility on the franchisee to be vigilant in protecting the brand's trademarks within their territory, but the franchisee has no control over the legal strategy or actions taken to address the infringement. This is a fairly standard practice in franchising, as franchisors typically want to maintain brand consistency and control legal matters related to their trademarks.
Prospective Belocal franchisees should understand that while they are required to report any trademark infringements, the franchisor has the ultimate authority on how to proceed. Franchisees should inquire about Belocal's history of protecting its trademarks and the resources it typically dedicates to such matters. Understanding Belocal's approach to trademark protection will help franchisees assess the potential risks and responsibilities associated with upholding the brand's integrity.