What happens if Bor Restoration's right to use its trademarks is challenged?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 licenses with Mr. Zamucen and our BOR IP Affiliate to sublicense the Marks in connection with offering the franchise opportunity identified in this disclosure document. We must maintain the goodwill of the Mark by monitoring your use of the Marks.
There are presently no effective material determinations of, and there is no pending material litigation involving the USPTO, any trademark administrator of any state or federal court, trial, and appeal board, or of any federal or state court concerning a claim of interference, infringement, opposition, or cancellation involving any of the Marks. There is no pending federal or state court litigation regarding our use or ownership rights in any Marks that are material to the franchise. There are no infringing uses or previous superior rights known to us that can materially affect your use of the Mark in this state or any other state where your Business is to be located.
Except for the license, there are no currently effective agreements that significantly limit our rights to use or license the use of the Marks listed in this section in any manner material to the franchise.
Mr. Zamucen intends to renew all registrations and file all appropriate affidavits for the Marks when required by law.
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.
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 the trademarks used by Bor Restoration are not federally registered, they do not have as many legal protections. If the right to use these trademarks is challenged, Bor Restoration franchisees may be required to switch to an alternative trademark. This change could increase the franchisee's expenses.
Bor Restoration retains the right to control any administrative or legal proceedings involving a trademark licensed to its franchisees. Franchisees are obligated to promptly inform Bor Restoration of any claims against them related to alleged infringement or unfair competition concerning the trademarks. In such cases, Bor Restoration will take necessary action to defend the franchisee and must indemnify the franchisee against third-party actions based solely on trademark infringement or unfair competition claims, unless the claim arises from the franchisee's violation of the Franchise Agreement.
Bor Restoration also has the right to require franchisees to modify or discontinue the use of any trademark, providing advance notice to all franchisees. If Bor Restoration decides to modify or discontinue a trademark or develop a substitute, franchisees must take action at their own expense to comply with the changes within a reasonable time after receiving written notice. Franchisees must also notify Bor Restoration if they become aware of any unauthorized third-party use of the trademarks, allowing Bor Restoration to decide whether to take action against the infringer. Franchisees do not have the right to independently pursue claims against infringers, and Bor Restoration will not compensate franchisees for exercising these rights.