What is Brightstar Care's responsibility if there is a challenge to the validity of the Marks?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
rial litigation involving the Marks. You must promptly notify us of any suspected unauthorized use of the Marks, any challenge to the validity of the Marks, or any challenge to our ownership of, our right to use and to license others to use, or
your right to use the Marks. We have the sole right to direct and control any administrative proceeding or litigation involving the Marks, including the right to settle the proceedings or litigation. We have the exclusive right, but not the obligation, to affirmatively prosecute actions against third parties for infringement or threatened infringement of the Marks.
We or our affiliates have the sole right to handle disputes with third parties regarding the Marks. You must immediately notify us in writing if you learn of any improper or infringing use of any Mark. We have the right to take any action we deem best, including to take no action, and the sole right to control any legal proceeding or negotiation resulting from any infringement, challenge, or claim or otherwise relating to the Marks. You may not settle or compromise any claim, suit, or demand asserted against you; you will be bound by our decisions in handling disputes regarding the Marks. You must fully cooperate with us and sign any documents and perform any actions we deem necessary, appropriate, or advisable to defend claims, suits, or demands and to protect and maintain our rights in the Marks. Unless it is established that a third-party claim asserted against you is based, directly or indirectly, on your misuse of the Marks, we will defend you at our cost against the third-party claim relating to the Marks, provided you have notified us immediately after learning of the claim and fully cooperate in the defense. Because we will defend the third-party claim relating to the Marks, you are not entitled to reimbursement for legal or other professional fees or costs paid to independent legal counsel or others in the matter. Despite our agreement to defend you, we are not liable to indemnify or reimburse you for any liability, costs, expenses, damages, or losses you sustain because of the third-party claim (unrelated to the costs of defense).
We are not aware of any superior prior rights or infringing uses that could materially affect your use of the Marks in any state; however, a federal trademark registration does not necessarily protect the use of the concerned mark against a prior user in a given relevant market area. Therefore, before entering into the Franchise Agreement, you should make every effort to ascertain that there are no existing uses of the Marks or confusingly similar marks in the market area where you wish to do business. You should immediately notify us of any confusingly similar marks you discover.
You may use only the Marks we designate and may use them only in the manner we authorize and permit. You may use the Marks only to operate the Agency and only at the Approved Location.
Source: Item 13 — TRADEMARKS (FDD pages 75–77)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees must promptly inform Brightstar Care of any challenges to the validity of the Marks. Brightstar Care has the sole right to manage any administrative or legal proceedings related to the Marks, including settling litigation. While Brightstar Care has the exclusive right to prosecute actions against third parties for infringement, they are not obligated to do so.
Brightstar Care also has the sole right to handle disputes with third parties regarding the Marks. Franchisees must notify Brightstar Care immediately in writing if they become aware of any improper or infringing use of any Mark. Brightstar Care has the right to take any action it deems best, including no action, and has the sole right to control any legal proceeding or negotiation resulting from any infringement, challenge, or claim relating to the Marks. Franchisees cannot settle or compromise any claim, suit, or demand asserted against them and will be bound by Brightstar Care's decisions in handling disputes regarding the Marks. Franchisees must fully cooperate with Brightstar Care and sign any documents and perform any actions Brightstar Care deems necessary to defend claims and protect its rights in the Marks.
Unless a third-party claim against a franchisee is based on the franchisee's misuse of the Marks, Brightstar Care will defend the franchisee at its own cost, provided the franchisee notifies Brightstar Care immediately after learning of the claim and fully cooperates in the defense. Franchisees are not entitled to reimbursement for legal or other professional fees paid to independent counsel because Brightstar Care will defend the third-party claim. Despite this agreement to defend, Brightstar Care is not liable to indemnify or reimburse franchisees for any liability, costs, expenses, damages, or losses sustained because of the third-party claim, excluding the costs of defense.
Before entering into the Franchise Agreement, prospective franchisees should make every effort to ascertain that there are no existing uses of the Marks or confusingly similar marks in the market area where they wish to do business and should immediately notify Brightstar Care of any confusingly similar marks they discover. Brightstar Care states that they are not aware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the Marks in any state; however, a federal trademark registration does not necessarily protect the use of the concerned mark against a prior user in a given relevant market area.