With whom is a Bft franchisee prohibited from communicating regarding infringement of Bft's marks, besides Bft and its counsel?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee is prohibited from communicating with any person other than Bft and its counsel regarding the use or infringement of any of Bft's marks. This means that if a Bft franchisee becomes aware of potential trademark infringement, they are obligated to report it directly to Bft.
This restriction ensures that Bft maintains control over how its trademarks are managed and protected. By centralizing communication, Bft can ensure consistent messaging and legal strategy in addressing infringement issues. The franchisee must notify Bft immediately in writing if they become aware that any person who is not a licensee of Bft is using or infringing upon any of the Marks.
Bft retains the discretion to determine the appropriate course of action, if any, regarding unauthorized use or infringement of its marks. Bft also maintains complete control over any litigation or settlement related to claims of infringement, unfair competition, or unauthorized use of its marks. The franchisee is required to assist and cooperate with any legal action undertaken by Bft, including providing testimony or furnishing documents.
Bft will be responsible for the legal expenses incurred in connection with any litigation or legal proceeding involving a third party, unless the franchisee's legal expenses are pre-approved in writing by Bft and the action arises from the franchisee's authorized use of the marks. This protects the franchisee from incurring legal costs without Bft's consent, while also ensuring that Bft maintains control over trademark-related legal matters.