Will Bombs Away defend a franchisee against legal action alleging trademark infringement at the franchisee's expense?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
a trademark licensed by us to you.
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third-party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
Superior Prior Rights and Infringing Uses
We do not know of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks.
Item 14
PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
Patents
We do not own rights in, or licenses to, patents that are material to the franchise. We do not have any pending patent applications.
Source: Item 13 — TRADEMARKS (FDD pages 24–25)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away will defend a franchisee against legal action alleging trademark infringement, provided the franchisee is using the trademarks in accordance with the franchise agreement. Specifically, Bombs Away will cover the expenses of defending the franchisee in such a legal action. Furthermore, Bombs Away will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee.
However, the FDD also states that Bombs Away may require a franchisee to modify or discontinue using a trademark, and that the franchisee will bear the expense of doing so. This could occur if Bombs Away determines there is a risk of infringement or if they are notified of conflicting trademark claims.
It is important to note that the franchise agreement obligates the franchisee to notify Bombs Away of any use of, or claims of rights to, a trademark that is identical or confusingly similar to a trademark licensed to the franchisee. However, Bombs Away is not required to take any affirmative action upon receiving such notification. Bombs Away retains the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee.