factual

Who has the discretion to determine the steps taken in response to unauthorized use of Bft's marks?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 4.3 Notification of Infringement. Franchisee agrees to notify Franchisor immediately in writing if it becomes aware that any person who is not a licensee of Franchisor is using or infringing upon any of the Marks. Franchisee may not communicate with any person other than Franchisor and its counsel in connection with any such use or infringement. Franchisor will have discretion to determine what steps, if any, are to be taken in any instance of unauthorized use or infringement of any of its Marks and will have complete control of any litigation or settlement in connection with any claim of an infringement or unfair competition or unauthorized use with respect to the Marks. Franchisee will execute any and all instruments and documents and will assist and cooperate with any suit or other action undertaken by Franchisor with respect to such unauthorized use or infringement such as by giving testimony or furnishing documents or other evidence. Franchisor will be responsible for legal expenses incurred by Franchisor in connection with any litigation or other legal proceeding involving such third-party. Franchisor shall not be liable for any legal expenses of Franchisee unless (a) pre-approved in writing by Franchisor in its discretion, and (b) the action proceeds or arises out of Franchisee's authorized use of the Marks hereunder.

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, Bft retains the discretion to determine the steps taken if there is unauthorized use or infringement of its marks. As a Bft franchisee, you must notify Bft immediately in writing if you become aware of any unauthorized use of Bft's marks by a non-licensee. You are not allowed to communicate with anyone other than Bft and its counsel regarding such matters.

Bft maintains complete control over any litigation or settlement related to claims of infringement, unfair competition, or unauthorized use of its marks. As a franchisee, you are obligated to assist and cooperate with Bft in any legal actions, including providing testimony or furnishing documents.

Bft will cover the legal expenses it incurs in connection with litigation involving third-party infringement. However, Bft is not liable for your legal expenses unless it pre-approves them in writing and the action arises from your authorized use of the marks. This means that franchisees need to be aware that they cannot independently pursue legal action to protect the Bft marks without prior written consent from Bft.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.