Who is responsible for fees and expenses related to Trademark litigation for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event any person or entity improperly uses or infringes the Trademarks or challenges your use or our use or ownership of the Trademarks, we will control all litigation and we have the right to determine whether suit will be instituted, prosecuted or settled, the terms of settlement and whether any other action will be taken.
You must promptly notify us of any such use or infringement of which you are aware or any challenge or claim arising out of your use of any Trademark.
You must take reasonable steps, without compensation, to assist us with any action we undertake.
We will be responsible for our fees and expenses with any such action, unless the challenge or claim results from your misuse of the Trademarks in violation of this Agreement, in which case you must reimburse us for our fees and expenses.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, Bens Soft Pretzels will generally be responsible for fees and expenses related to trademark litigation. However, a franchisee may become responsible for these costs if the litigation arises due to the franchisee's misuse of the Bens Soft Pretzels trademarks.
Specifically, Bens Soft Pretzels retains control over any litigation related to the Trademarks, including the decision to initiate, prosecute, or settle a suit. The franchisee is obligated to promptly inform Bens Soft Pretzels of any infringement or challenges to the Trademarks. Franchisees must also provide reasonable assistance in any legal action undertaken by Bens Soft Pretzels.
If a challenge or claim results from the franchisee's misuse of the Trademarks in violation of the Franchise Agreement, the franchisee is required to reimburse Bens Soft Pretzels for all fees and expenses incurred in connection with the legal action. This condition underscores the importance of adhering to the trademark usage guidelines set forth in the Franchise Agreement to avoid potential financial liabilities.