What is the Better Blend franchisee required to do in the event of an Action against Better Blend related to the operation of the Business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) BBF shall defend Franchisee (at BBF's expense) against any Action by a third party alleging infringement by Franchisee's use of a Mark, and (ii) BBF shall indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (b) Infringement by Third Party. Franchisee shall promptly notify BBF if Franchisee becomes aware of any possible infringement of a Mark by a third party. BBF may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee becomes aware of any possible infringement of a mark by a third party, the franchisee must promptly notify Better Blend. Better Blend then has the sole discretion to commence or join any claim against the infringing party. An "Action" is defined as any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, or judgment or appeal thereof, whether formal or informal.
Better Blend retains exclusive control over the prosecution or defense of any action related to possible infringement of or by the marks. This means a franchisee cannot independently pursue legal action related to trademark issues without Better Blend's involvement.
This clause protects Better Blend's brand and trademarks, ensuring consistent legal strategy and preventing franchisees from taking actions that could negatively impact the overall brand. For a prospective franchisee, this means they must be vigilant in reporting any potential trademark infringements but will not have the authority to act independently in legal matters concerning the brand's trademarks.