Who has the right to control legal proceedings involving a trademark licensed by Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
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, Better Blend retains the right to control any administrative proceedings or litigation involving a trademark that it licenses to its franchisees. This means that if a legal issue arises concerning the use of Better Blend's trademarks, Better Blend, not the franchisee, will direct the legal strategy and make decisions regarding the proceedings.
This control is significant for prospective franchisees because it centralizes the management of trademark-related legal matters with Better Blend. While franchisees are obligated to notify Better Blend of any potential trademark infringements or claims, they do not have the authority to independently pursue legal action. Better Blend's involvement aims to ensure consistent defense and protection of its brand across all franchise locations.
Furthermore, Better Blend commits to defending franchisees against legal actions alleging trademark infringement, provided the franchisee uses the trademarks according to the franchise agreement. Better Blend will cover the expenses for this defense and indemnify the franchisee for damages if the legal action results in an unfavorable outcome for the franchisee. However, Better Blend also reserves the right to require franchisees to modify or discontinue using a trademark, at the franchisee's expense, with a compliance period not exceeding 90 days. This highlights the importance of franchisees adhering strictly to Better Blend's trademark usage guidelines to maintain brand consistency and minimize legal risks.
In the event that Better Blend requires a franchisee to modify or discontinue the use of a trademark, the franchisee's rights under the franchise agreement remain unchanged, aside from the specific trademark modification or discontinuation. This provision offers some assurance that the overall franchise agreement remains intact, even if specific branding elements are altered due to legal or strategic reasons.