Is Bevaris Alliance required to defend a franchisee against a claim against their use of the Bevaris Alliance trademarks?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
You must notify Bevaris immediately when you learn about an infringement of or challenge to your use of our trademarks. Bevaris will take the action we think appropriate. While Bevaris is not required to defend you against a claim against your use of our trademarks, Bevaris will reimburse you for your liability and reasonable costs in connection with defending Bevaris' trademarks. To receive reimbursement, you must have notified Bevaris immediately when you learned about the infringement or challenge.
Source: Item 13 — TRADEMARKS (FDD pages 14–16)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Bevaris Alliance is not required to defend a franchisee against claims arising from their use of the company's trademarks. However, Bevaris Alliance will reimburse the franchisee for their liability and reasonable costs if they are defending Bevaris Alliance's trademarks. To be eligible for reimbursement, the franchisee must immediately notify Bevaris Alliance upon learning of any infringement or challenge.
This arrangement means that while Bevaris Alliance franchisees are responsible for their initial defense, they can recover costs and liabilities if the defense is related to protecting Bevaris Alliance's trademarks. This shifts some of the financial burden back to Bevaris Alliance, aligning interests in protecting the brand's intellectual property.
Franchisees must notify Bevaris Alliance immediately if they become aware of any trademark infringement or challenges to ensure they are eligible for reimbursement of costs and liabilities incurred in defending Bevaris Alliance's trademarks. This immediate notification is a critical condition for receiving financial support from Bevaris Alliance in these situations. Franchisees should maintain detailed records of all costs incurred in defending the trademarks to facilitate the reimbursement process.