Does Bombs Away protect franchisees against claims of infringement arising from their use of the trademarks?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We have the right to control any administrative proceedings or litigation involving 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.
Source: Item 13 — TRADEMARKS (FDD pages 24–25)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away offers some protection to franchisees regarding the use of its trademarks. Bombs Away states that they will protect a franchisee's right to use the principal trademarks.
Specifically, Bombs Away will defend a franchisee (at Bombs Away's expense) against any legal action by a third party alleging trademark infringement, provided the franchisee uses the trademarks in accordance with the franchise agreement. Furthermore, Bombs Away will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee.
However, the franchise agreement obligates the franchisee to notify Bombs Away of any use of, or claims of rights to, a trademark identical or confusingly similar to the trademarks licensed to them. It is important to note that Bombs Away is not required to take any action upon receiving such notification. Bombs Away retains the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee. Bombs Away may also require the franchisee to modify or discontinue using a trademark, and the franchisee will bear the expense of doing so. Bombs Away also states that they are not aware of superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks.