In the event of infringement, what is a Bor Restoration franchisee's obligation regarding cooperation?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- b. You acknowledge that we have the right, in our sole discretion, to determine whether any action will be taken because of any possible infringement or illegal use of the Marks, the System, or the Proprietary Information. We may commence or prosecute such action in our name and may join you as a party to the action if we determine it to be reasonably necessary for the continued protection and quality control of the Marks and each component of the System. If you learn of a third party that you believe is not authorized to use the Marks or any variant of them, you must promptly notify us. We will determine whether we wish to take any action against the third party. You will have no right to make any demand of us and have no right to prosecute any claim against the alleged infringer. You must cooperate with us in any way necessary in the event of such an infringement.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a franchisee is obligated to cooperate with Bor Restoration in the event of an infringement on the brand's marks, system, or proprietary information. Specifically, if a franchisee becomes aware of a third party potentially infringing on Bor Restoration's marks, they must promptly notify Bor Restoration.
Bor Restoration retains the sole discretion to determine whether to take action against the potential infringement. They may initiate legal proceedings in their name and involve the franchisee in the action if deemed reasonably necessary to protect the marks and system. However, the franchisee has no right to demand action from Bor Restoration or independently pursue claims against the alleged infringer.
This clause ensures that Bor Restoration maintains control over its brand and intellectual property. It also means that franchisees must be vigilant in reporting any suspected infringement but must rely on Bor Restoration to take appropriate action. Franchisees should be aware that failure to cooperate could be a breach of the franchise agreement.