Is Beverly Anns Cookie required to participate in a franchisee's defense or indemnify them for expenses in a proceeding involving a patent licensed to the Beverly Anns Cookie franchisee?
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 our patent in accordance with the Franchise Agreement that 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 patent. We have no obligation to pursue any infringing users of our patent. 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 unauthorized party is using the patent. We have the sole discretion to take such action as we deem appropriate to exclusively control any litigation or administrative proceeding involving the patents. We are not required to participate in your defense nor are we required to indemnify you for expenses or damages in a proceeding involving a patent, patent application, or copyright licensed to you.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 47–48)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie is not required to participate in a franchisee's defense nor are they required to indemnify a franchisee for expenses or damages in a proceeding involving a patent, patent application, or copyright licensed to the franchisee. However, Beverly Anns Cookie will defend a franchisee against any claim brought against them by a third party alleging that the franchisee's use of Beverly Anns Cookie's patent infringes upon that party's intellectual property rights, provided the franchisee is using the patent in accordance with the Franchise Agreement.
Beverly Anns Cookie may require the franchisee's assistance in such a defense, but the franchisee is not permitted to control any proceeding or litigation relating to Beverly Ann's Cookie's patent. Beverly Anns Cookie has no obligation to pursue infringing users of their patent but may take action they deem appropriate if they learn of an infringing user. The franchisee must notify Beverly Anns Cookie within three days if they learn that any unauthorized party is using the patent. Beverly Anns Cookie has the sole discretion to take action to exclusively control any litigation or administrative proceeding involving the patents.
This means that if a franchisee is sued for using a patent licensed to them by Beverly Anns Cookie, Beverly Anns Cookie is not obligated to provide a defense or cover the franchisee's expenses. However, if the lawsuit alleges that the franchisee's use of Beverly Anns Cookie's own patent infringes on a third party's rights, Beverly Anns Cookie will defend the franchisee. This distinction is important for prospective franchisees to understand, as it clarifies the extent of Beverly Anns Cookie's support in intellectual property disputes.