Is a Beverly Anns Cookie franchisee allowed to control any legal proceedings related to the Beverly Anns Cookie trademarks?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We will defend you against any claim brought against you by a third party that your use of the Marks in accordance with the Franchise Agreement infringes upon that party's intellectual property rights. We may require your assistance, but you are not permitted to control any proceeding or litigation relating to our Marks. We have no obligation to pursue any infringing users of our Marks. If we learn of an infringing user, we may take any action appropriate we deem appropriate, but we are not required to take any action if we do not feel it is warranted. You must notify us within three days if you learn that any party is using the Marks or a trademark that is confusingly similar to the Marks. We have the sole discretion to take such action as we deem appropriate to exclusively control any litigation or administrative proceeding involving a trademark licensed by us to you.
If it becomes advisable at any time, in our sole discretion, for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trademarks or service marks, you must comply with our directions within a reasonable time after receiving notice. We will not reimburse you for your direct expenses of changing signage, for any loss of revenue, or other indirect expenses due to any modified or discontinued Mark, or for your expenses of promoting a modified or substituted trademark or service mark.
You must not directly or indirectly contest our right to the Marks. We may acquire, develop, and use additional marks not listed here, and may make those marks available for your use and for use by other franchisees.
Source: Item 13 — TRADEMARKS (FDD pages 45–47)
What This Means (2025 FDD)
According to the 2025 FDD, Beverly Anns Cookie franchisees are not permitted to control any legal proceedings or litigation relating to the Beverly Anns Cookie trademarks. While Beverly Anns Cookie will defend a franchisee against third-party claims that the franchisee's use of the Beverly Anns Cookie marks infringes on intellectual property rights, Beverly Anns Cookie retains control over any related legal actions.
Beverly Anns Cookie has the sole discretion to control any litigation or administrative proceeding involving a trademark licensed by them to the franchisee. If a franchisee becomes aware of any party using the Beverly Anns Cookie marks or a confusingly similar trademark, the franchisee must notify Beverly Anns Cookie within three days. However, Beverly Anns Cookie is not obligated to take any action against infringing users if they do not deem it warranted.
This means that while Beverly Anns Cookie franchisees are required to report any potential trademark infringements, they have no say in how Beverly Anns Cookie chooses to address the issue. This is a fairly standard practice in franchising, as the franchisor needs to maintain consistent brand standards and protect the overall value of the trademark. The franchisee must also not directly or indirectly contest Beverly Ann's Cookie's right to the marks.
If Beverly Anns Cookie decides to modify or discontinue using any mark, franchisees must comply with their directions within a reasonable time after receiving notice. However, Beverly Anns Cookie will not reimburse franchisees for expenses related to changing signage, loss of revenue, or promoting a modified or substituted trademark.