What happens if someone challenges a Browns Chicken franchisee's use of any Mark?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
on-line service, including but not limited to You Tube, facebook, or Twitter, create and maintain his own web site or facebook listing (or similar electronic communication device) on the Internet using the Marks, or use the Marks on the Internet in any other manner.
C. Notification Of Infringements and Claims.
Franchisee shall immediately notify Brown of any apparent infringement of or challenge to Franchisee's use of any Mark or claim by any person of any rights in any Mark, and Franchisee shall not communicate with any person other than Brown and its counsel in connection with any such infringement, challenge or claim. Brown shall have sole discretion to take such action as it deems appropriate and the right to control exclusively any litigation or Patent and Trademark Office or other administrative proceeding arising out of any such infringement, challenge or claim, or otherwise relating to any Mark.
Franchisee agrees to execute any and all instruments and documents, render such assistance and do such acts and things as may, in the opinion of Brown's counsel, be necessary or advisable to protect and maintain the interests of Brown in any litigation or Patent and Trademark Office or other proceeding or to otherwise protect and maintain the interests of Brown in the Marks.
In the event Brown deems it advisable, Franchisee shall file for and maintain a "certificate of trade name" in the county or other appropriate jurisdiction in which Franchisee's Store is located.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, if a franchisee faces an infringement or challenge to their use of any Mark, or if someone claims rights to a Mark, the franchisee must immediately notify Browns Chicken. The franchisee is not allowed to communicate with anyone other than Browns Chicken and its counsel regarding the issue. Browns Chicken has the sole discretion to take action and has the right to exclusively control any litigation, Patent and Trademark Office, or other administrative proceeding related to the infringement, challenge, or claim.
Furthermore, the franchisee must execute documents, provide assistance, and perform actions deemed necessary by Browns Chicken's counsel to protect Browns Chicken's interests in any litigation, Patent and Trademark Office, or other proceeding, or to otherwise protect Browns Chicken's interests in the Marks.
Browns Chicken will indemnify the franchisee against direct damages (excluding consequential damages like lost revenue or profits) for which the franchisee is held liable in any proceeding arising from the franchisee's use of a Mark, provided the franchisee was compliant with the franchise agreement and properly notified Browns Chicken of the claim or proceeding. This indemnification also covers costs reasonably incurred by the franchisee in defending against such claims or proceedings where they are named as a party.
In summary, Browns Chicken retains control over trademark-related legal matters, and franchisees are obligated to cooperate with Browns Chicken in protecting its Marks. Browns Chicken offers some protection to franchisees against direct damages and costs if they are sued for using the Marks as authorized in the franchise agreement.