What might happen if Bor Restoration's right to use the trademarks is challenged?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not have registration for the above trademarks. Therefore, our trademarks do not have many legal benefits and rights as a federally registered trademark. If our right to use the trademarks is challenged, you may have to change to an alternative trademark, which may increase your expenses.
We have the right to control any administrative proceedings or litigation involving a Mark licensed by us to you. If you learn of any claim against you for alleged infringement, unfair competition, or similar claims about the Marks, you must promptly notify us. We will take the action we deem necessary to defend you. We must indemnify you for any action against you by a third party based solely on alleged infringement, unfair competition, or similar claims about the Marks. We have no obligation to defend or indemnify you if the claim against you is related to your use of the Marks in violation of the Franchise Agreement.
We have the right to require you to modify or discontinue your use of any of the Marks. If we exercise this right, we will provide all franchisees with advance notice.
If we, in our sole discretion, determine it necessary to modify or discontinue the use of any proprietary Marks or to develop additional or substitute marks, you will, within a reasonable time after receipt of written notice of such modification or discontinuation from us, take such action, at your sole expense, as may be necessary to comply with such modification, discontinuation, addition, or substitution.
Source: Item 13 — Trademarks (FDD pages 30–31)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, because some of their trademarks do not have federal registration, they lack the full legal protections of federally registered trademarks. If Bor Restoration's right to use these trademarks is challenged, franchisees may be required to switch to an alternative trademark. This change could lead to increased expenses for the franchisee.
Bor Restoration has the right to control administrative proceedings or litigation involving a licensed mark. Franchisees must promptly notify Bor Restoration of any claims against them for alleged infringement or unfair competition related to the marks. Bor Restoration will then take action they deem necessary to defend the franchisee and must indemnify the franchisee for actions against them by a third party based on alleged infringement, unfair competition, or similar claims about the Marks, unless the claim is related to the franchisee's violation of the Franchise Agreement.
Bor Restoration also retains the right to require franchisees to modify or discontinue the use of any of the marks, providing advance notice to all franchisees if they exercise this right. If Bor Restoration determines it necessary to modify or discontinue the use of any proprietary marks, or to develop additional or substitute marks, franchisees must take action at their sole expense to comply with such changes within a reasonable time after receiving written notice.