Who is responsible for legal fees if someone challenges the Bens Soft Pretzels Trademarks?
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 control any litigation regarding the Trademarks and will determine if a suit is filed, prosecuted, or settled. Bens Soft Pretzels also decides the terms of any settlement and what actions to take. The franchisee is required to promptly notify Bens Soft Pretzels of any trademark use, infringement, challenge, or claim. Additionally, the franchisee must take reasonable steps to assist Bens Soft Pretzels with any action they undertake, without compensation.
Bens Soft Pretzels will be responsible for their own fees and expenses related to any action regarding trademark challenges or claims, unless the challenge or claim results from the franchisee's misuse of the Trademarks in violation of the Franchise Agreement. In that case, the franchisee must reimburse Bens Soft Pretzels for their fees and expenses.
This means that as a Bens Soft Pretzels franchisee, you are generally protected from legal expenses if someone challenges the trademarks, as long as you are using them correctly. However, if you misuse the trademarks in a way that leads to a legal challenge, you will be responsible for covering Bens Soft Pretzels' legal costs. This provision is fairly standard in franchising, as it protects the franchisor's brand while holding franchisees accountable for their actions.