What is the Better Blend franchisee's required action upon learning of a confusingly similar trademark?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We have the right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense. You will have a reasonable period of time to comply with the change, not to exceed 90 days. After such period, you would no longer have the right to use the unmodified or discontinued trademark. Your rights under the franchise agreement do not change, other than the modification or discontinuation of the trademark.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee becomes aware of the use of, or claims to, a trademark that is identical or confusingly similar to a trademark licensed to them, the franchisee is obligated to notify Better Blend. However, the FDD states that Better Blend is not required to take any action after being notified. Better Blend retains the right to control any administrative or legal proceedings involving a trademark licensed to the franchisee.
This means that if a Better Blend franchisee discovers another business using a similar name or logo, they must inform Better Blend. While Better Blend isn't obligated to act, they reserve the right to handle any legal matters related to the trademark. This is a fairly standard practice in franchising, as franchisors typically want to maintain control over their brand's image and legal protection.
Better Blend also has the right to require a franchisee to modify or discontinue using a trademark, at the franchisee's expense. The franchisee will be given a reasonable period of time, not exceeding 90 days, to comply with this change. After this period, the franchisee will no longer have the right to use the trademark. This clause highlights the potential risk that Better Blend could force a franchisee to rebrand at their own cost if trademark issues arise.