Does Bombs Away know of any copyright infringement that could materially affect a franchisee?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Bombs Away Franchising shall defend Franchisee (at Bombs Away Franchising's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Bombs Away Franchising will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (b) Infringement by Third Party. Franchisee shall promptly notify Bombs Away Franchising if Franchisee becomes aware of any possible infringement of a Mark by a third party. Bombs Away Franchising may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control. Bombs Away Franchising shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 25–26)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Bombs Away outlines the procedures related to trademark infringement. If a franchisee uses the Bombs Away marks in accordance with the franchise agreement, Bombs Away will defend the franchisee against any third-party action alleging infringement. Bombs Away will also cover the franchisee's expenses and damages if the action is resolved unfavorably to the franchisee.
Conversely, the franchisee is required to promptly notify Bombs Away if they become aware of any potential infringement of a Bombs Away mark by a third party. Bombs Away retains the exclusive right to control any legal action related to potential infringement of the marks.
These stipulations mean that Bombs Away franchisees are protected from trademark infringement claims as long as they adhere to the guidelines established in the franchise agreement. However, the FDD excerpt does not explicitly state whether Bombs Away is aware of any current or potential copyright infringements that could materially affect a franchisee. A prospective franchisee should seek clarification from Bombs Away regarding any known or potential infringements and their possible impact.