What obligation does the Better Blend franchise agreement place on franchisees regarding notification of similar trademarks?
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.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the franchise agreement requires franchisees to notify Better Blend of any use of, or claims of rights to, a trademark that is either identical or confusingly similar to a trademark that Better Blend has licensed to the franchisee. However, the FDD states that Better Blend is not obligated to take any specific action upon receiving such notification.
This means that if a Better Blend franchisee becomes aware of another business using a similar name or logo, or if someone claims the franchisee is infringing on their trademark, the franchisee must inform Better Blend. While Better Blend is not required to take action, they do retain the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee.
Better Blend does protect franchisees against claims of infringement or unfair competition arising out of the franchisee's use of the trademarks. If the franchisee uses Better Blend's trademarks in accordance with the franchise agreement, Better Blend will defend the franchisee (at Better Blend's expense) against any legal action alleging infringement and will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee.