Under what conditions will Better Blend indemnify a franchisee for expenses and damages related to trademark infringement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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 will indemnify a franchisee for expenses and damages related to trademark infringement if the franchisee uses Better Blend's trademarks in accordance with the franchise agreement. In this case, Better Blend will defend the franchisee (at Better Blend's expense) against any legal action by a third party alleging infringement. Better Blend will cover the franchisee's expenses and damages if the legal action is resolved unfavorably to the franchisee.
However, Better Blend may require the franchisee to modify or discontinue using a trademark, at the franchisee's expense. The franchisee will have a reasonable period of time to comply with the change, not to exceed 90 days. After that period, the franchisee would no longer have the right to use the unmodified or discontinued trademark. The franchisee's rights under the franchise agreement do not change, other than the modification or discontinuation of the trademark.
It is important to note that Better Blend is aware of existing trademarks and food-service businesses that may be similar to Better Blend's trademarks. These other businesses may have superior rights in their local trade areas. Better Blend cannot guarantee exclusive or superior rights to their mark in all geographical areas. This means a Better Blend franchisee could face trademark challenges depending on their location.