Is Bumble Roofing required to participate in a franchisee's defense if they are party to a trademark proceeding?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately when you learn about an infringement of or challenge to your use of the Marks. We and/or Lynx IP may take whatever action we deem necessary to protect the unauthorized use of the Marks and you must cooperate with us and/or Lynx IP. We have the right to control any administrative proceedings or litigation involving the Marks. If we and/or Lynx IP require you to join in any action, we will pay for your out-of-pocket expenses. We and/or Lynx IP are not required to participate in your defense or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a trademark licensed by us to you or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 39–40)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing and/or Lynx IP (the trademark owner) are not required to participate in a franchisee's defense or indemnify them for expenses or damages if the franchisee is involved in an administrative or judicial proceeding concerning a trademark licensed to them by Bumble Roofing. This also applies if the proceeding is resolved unfavorably to the franchisee.
This means that if a franchisee is sued for trademark infringement related to their use of the Bumble Roofing trademarks, Bumble Roofing is not obligated to provide legal assistance or cover the franchisee's legal costs or any resulting damages. The franchisee would be solely responsible for their defense.
This is a significant risk for franchisees, as trademark litigation can be expensive and time-consuming. It is important for prospective Bumble Roofing franchisees to understand this potential liability and to consider purchasing appropriate insurance coverage. Franchisees should also ensure they are using the trademarks correctly and in accordance with Bumble Roofing's guidelines to minimize the risk of a trademark dispute.
However, Bumble Roofing does state that if they and/or Lynx IP require a franchisee to join in any action, Bumble Roofing will pay for the franchisee's out-of-pocket expenses. This suggests that in some cases, Bumble Roofing may find it beneficial to involve the franchisee in trademark-related legal matters, and in those instances, the franchisee's direct costs would be covered.