Who has the right to control litigation involving the Proprietary Marks of Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us of any unauthorized use of the Proprietary Marks. You must also notify us of any challenge to the validity of, or the right to use, any of the Proprietary Marks. We and BEI have the right to control any administrative proceeding or litigation that involves the Proprietary Marks. This right includes the right to settle any of those disputes. We and BEI may, but are not required to, try to stop other people from using the Proprietary Marks.
We will defend you against any infringement claims that arise from your proper use of the Proprietary Marks or the Works (as defined in Item 14) at our expense, including the cost of any judgment or settlement, if your use of the Proprietary Marks and the Works complied with the Franchise Agreement, but at your expense if your use of the Proprietary Marks and the Works
was not proper or did not comply with the Franchise Agreement. You must assist us in any action we take to protect the Proprietary Marks. Unless this action results from your improper use of the Proprietary Marks or violation of the Franchise Agreement, we will reimburse you for your out-ofpocket costs in assisting us.
Source: Item 13 — TRADEMARKS (FDD pages 45–47)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, both Brueggers Bagels and its affiliate, BEI (Bruegger's Enterprises, Inc.), have the right to control any administrative proceeding or litigation involving the Proprietary Marks. This control extends to the right to settle any disputes related to these marks. However, neither Brueggers Bagels nor BEI is obligated to actively prevent others from using the Proprietary Marks.
This means that as a Brueggers Bagels franchisee, you are required to notify Brueggers Bagels of any unauthorized use of the Proprietary Marks or any challenges to their validity. While Brueggers Bagels and BEI have the right to control legal proceedings, they are not necessarily required to take action against infringers. This could leave franchisees in a vulnerable position if the brand's trademarks are being diluted or misused in their territory.
Brueggers Bagels will defend a franchisee against infringement claims arising from the franchisee's proper use of the Proprietary Marks, covering costs of judgments or settlements, provided the franchisee's use complies with the Franchise Agreement. However, if the infringement claim arises from improper use or non-compliance with the Franchise Agreement, the franchisee will bear the expenses. Franchisees are obligated to assist Brueggers Bagels in any action to protect the Proprietary Marks, and will be reimbursed for out-of-pocket costs unless the action is due to their own improper use or violation of the Franchise Agreement.
This arrangement is fairly typical in franchising, where the franchisor retains control over its trademarks but also places some responsibility on the franchisee to protect the brand at the local level. It is important for a prospective Brueggers Bagels franchisee to understand their obligations and potential liabilities related to trademark protection, and to ensure they adhere strictly to the brand standards and Franchise Agreement to avoid incurring expenses in defending against infringement claims.