factual

Does Bombs Away protect a franchisee's right to use the principal trademarks?

Bombs_Away Franchise · 2024 FDD

Answer 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 states that it protects a franchisee's right to use the principal trademarks. Bombs Away also states that it will protect franchisees against claims of infringement or unfair competition arising out of the use of the trademarks.

Specifically, if a franchisee uses Bombs Away's trademarks in accordance with the franchise agreement, Bombs Away will defend the franchisee (at Bombs Away's expense) against any legal action by a third-party alleging infringement due to the franchisee's trademark use. Bombs Away will also cover expenses and damages for the franchisee if the legal action is resolved unfavorably to the franchisee.

However, the franchise agreement requires franchisees to notify Bombs Away of any use of, or claims to, a trademark identical or confusingly similar to the trademarks licensed to them. Bombs Away is not obligated to take action upon notification of such uses or claims, but retains the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee. Bombs Away may also require a franchisee to modify or discontinue using a trademark, at the franchisee's expense.

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. The principal trademarks that Bombs Away licenses to franchisees are owned by Bombs Away and registered on the Principal Register of the United States Patent and Trademark Office.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.