Is Belocal obligated to take action regarding alleged infringement of the Copyrighted Materials?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. 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
or those of our affiliates in any litigation or proceeding of this type or to otherwise protect and maintain our or their interest in the Marks.
You may not use any of the Marks as part of your corporate or other name or as part of a domain name. You must also follow our instructions for identifying yourself as a franchisee and for filing and maintaining the requisite trade name or fictitious name registrations. You must execute any documents we or our counsel determine are necessary to obtain protection for the Marks or to maintain their continued validity and enforceability. Neither you nor your Principal(s) may take any action that would prejudice or interfere with the validity of our rights with respect to the Marks, nor may you or your Principal(s) contest the validity of our interest in the Marks or assist others to do so.
We have the right to substitute different trade names, service marks, trademarks, and indicia of origin for the Marks if the Marks can no longer be used, or if we determine, in our sole discretion, that the substitution will be beneficial to the System. If we pursue any such substitution, we may require you to discontinue or modify your use of any Mark or use one or more additional or substitute Marks at your expense.
ITEM 14.
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, Belocal has sole discretion, but not the obligation, to take action regarding alleged infringement of the Copyrighted Materials. This means that while Belocal has the right to take action if there is an alleged infringement, they are not required to do so. Belocal also has the right to exclusively control any litigation or U.S. Copyright Office proceeding arising out of any alleged infringement, challenge, or claim concerning any of the Copyrighted Materials.
As a Belocal franchisee, you are required to immediately notify Belocal of any infringement of the Copyrighted Materials or any challenge to your use of the materials. You must also agree not to communicate with anyone other than Belocal, a designated affiliate, or their counsel about any infringement, challenge, or claim. Additionally, you must execute all documents and give Belocal any assistance that their counsel deems necessary to protect their interests in any litigation or proceeding.
Belocal may modify or discontinue the use of the Copyrighted Materials at their sole discretion, and if they do so, you must also modify or discontinue your use of the materials at your own expense. This highlights the importance of understanding that Belocal retains control over the Copyrighted Materials and can make changes as they see fit, which could impact your business operations. Belocal is also not obligated by the Franchise Agreement, or otherwise, to protect any rights you have to use the Copyrighted Materials or to defend or indemnify you for claims relating to the Copyrighted Materials.
This arrangement is fairly typical in franchising, where the franchisor retains control over its intellectual property and brand standards. However, it's crucial for a prospective Belocal franchisee to recognize that they bear the risk of changes to the Copyrighted Materials and must comply with Belocal's decisions, even if it incurs additional costs. Furthermore, Belocal is not obligated to defend the franchisee in case of claims relating to the Copyrighted Materials.