Who has the right to defend claims against a Brueggers Bagels licensee related to the use of Marks?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.6.
Defense of Marks and System by Licensor.** If Licensee receives notice or is informed or learns of any claim, suit or demand against Licensee on account of any alleged infringement, unfair competition, or similar matter relating to Licensee's use of the Marks, Licensee shall promptly notify Licensor of such claim, suit or demand.
Upon receiving such notice, Licensor shall promptly consider and may take such action as it deems necessary to protect the Marks and the System.
Licensor shall have the right to defend, compromise or settle any such claim, in its sole discretion and at Licensor's sole cost and expense, using attorneys of its own choosing.
Licensee agrees to cooperate fully with Licensor in connection with the defense of any such claim.
Licensee shall not settle or compromise any such claim without the prior written consent of Licensor.
Licensee may participate at Licensee's own expense in such defense or settlement, but Licensor's decision with regard to such defense or settlement shall be final.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the licensor has the right to defend claims against a licensee related to the use of marks. If a licensee receives notice of any claim, suit, or demand regarding alleged infringement, unfair competition, or similar matters related to the use of the marks, the licensee must promptly notify the licensor.
Upon receiving such notice, Brueggers Bagels, as the licensor, will consider and may take action to protect the marks and the System. Brueggers Bagels has the right to defend, compromise, or settle any such claim at its sole discretion, using attorneys of its choosing, and at its own cost and expense.
The franchisee must cooperate fully with Brueggers Bagels in defending any claim and is not allowed to settle or compromise any claim without the prior written consent of Brueggers Bagels. The franchisee may participate in the defense or settlement at their own expense, but Brueggers Bagels's decision regarding the defense or settlement will be final. This arrangement is typical in franchising, as the franchisor needs to protect the brand's trademarks uniformly.