Who has the sole discretion regarding actions related to infringement, challenge, or claims against Belocal's trademarks?
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, Belocal or its affiliates have sole discretion (but not the obligation) to take any action they deem appropriate regarding any alleged infringement, challenge, or claim concerning any of Belocal's marks. They also have 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.
This means that while a Belocal franchisee must notify Belocal of any potential trademark issues, Belocal ultimately decides how to respond, including whether to pursue legal action. The franchisee is obligated to assist Belocal in protecting its trademarks by executing necessary documents and providing assistance as requested by Belocal's counsel.
This arrangement is typical in franchising, as the franchisor needs to maintain consistent brand standards and protect its trademarks across all franchise locations. However, it also means that a franchisee has limited control over how trademark issues are handled, even if they directly impact their business. The franchisee must agree not to communicate with any person other than Belocal, any designated affiliate, and their counsel about any infringement, challenge, or claim of this type.