Is Better Blend required to participate in the defense of a franchisee in a copyright infringement proceeding?

According to Better Blend's 2024 Franchise Disclosure Document, Better Blend is obligated to defend a franchisee in a legal action alleging trademark infringement under specific conditions. If the franchisee has used the trademarks in accordance with the franchise agreement, Better Blend will defend the franchisee (at Better Blend's expense) against any legal action by a third party alleging infringement due to the franchisee's use of the trademark.

Furthermore, Better Blend will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee. This protection extends only to trademark infringement claims, not copyright infringement. The FDD states that Better Blend does not know of any copyright infringement that could materially affect a franchisee.

Better Blend retains the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee. However, Better Blend may require the franchisee to modify or discontinue using a trademark, at the franchisee's expense, providing a reasonable compliance period not exceeding 90 days. After this period, the franchisee would lose the right to use the trademark. These provisions aim to protect both the franchisee and Better Blend's trademark rights, ensuring consistent brand usage and minimizing legal risks.