Does Bens Soft Pretzels have the right to determine the terms of settlement in trademark litigation?
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 retains control over trademark litigation. Specifically, if there is any improper use or infringement of the trademarks, or challenges to the use or ownership of the trademarks, Bens Soft Pretzels has the authority to manage all litigation.
This control extends to deciding whether to initiate, prosecute, or settle a lawsuit. Bens Soft Pretzels also determines the terms of any settlement and whether any other action should be taken. The franchisee is obligated to promptly inform Bens Soft Pretzels of any known use or infringement of the trademarks or any related claims arising from the franchisee's use of a trademark.
The franchisee must also provide reasonable assistance to Bens Soft Pretzels in any legal action undertaken, without receiving compensation. Bens Soft Pretzels will cover the fees and expenses associated with such actions, unless the challenge or claim arises from the franchisee's misuse of the trademarks, in which case the franchisee is responsible for reimbursing Bens Soft Pretzels for their fees and expenses. This arrangement is typical in franchising, as the franchisor needs to protect its brand and trademarks, which are essential to the franchise system.