What is the required action for a Bft franchisee if they become aware of someone infringing on Bft's marks?
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, if a franchisee becomes aware of someone infringing on Bft's marks, they must immediately notify Bft in writing. The franchisee is not allowed to communicate with the infringing party directly, only with Bft and its counsel.
Bft has the sole discretion to decide what actions, if any, will be taken against the infringing party. Bft also maintains complete control over any litigation or settlements related to the unauthorized use of its marks. The franchisee is obligated to assist and cooperate with Bft in any legal actions, which may include providing testimony, documents, or other evidence.
Bft will cover the legal expenses it incurs during any litigation involving a third party's infringement. However, Bft is not responsible for covering the franchisee's legal expenses unless Bft has given prior written approval and the legal action arises from the franchisee's authorized use of Bft's marks.