Is Bumper Man obligated to protect a franchisee against claims of infringement or unfair competition related to the Bumper Man trademarks?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not obligated to protect your rights to use the Marks or to protect you against claims of infringement or unfair competition. We are not obligated to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving the Marks or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man is not obligated to protect a franchisee's right to use the Bumper Man marks, nor is it obligated to defend a franchisee against claims of infringement or unfair competition. Bumper Man also has no obligation to participate in a franchisee's defense or to cover expenses or damages if the franchisee is involved in an administrative or judicial proceeding concerning the marks, especially if the outcome is unfavorable for the franchisee.
This means that if a franchisee is sued for trademark infringement related to their use of the Bumper Man marks, the franchisee will likely be responsible for their own legal defense and any resulting damages. This is a significant risk for franchisees, as trademark litigation can be expensive and time-consuming. It is fairly common in franchising for the franchisor to take the lead on trademark defense, but the FDD clearly states that Bumper Man is not obligated to do so.
While Bumper Man is not obligated to defend the franchisee, the FDD does state that the franchisee must promptly notify Bumper Man of any infringement of the marks or any challenge to their use. The franchisee must also agree not to communicate with anyone other than Bumper Man, its affiliates, or their counsel about any infringement, challenge, or claim. Bumper Man has the sole discretion to take any action it deems appropriate and the right to exclusively control any litigation or proceeding concerning the marks. Franchisees are required to sign all documents and provide any assistance necessary to protect Bumper Man's interests in any litigation or proceeding.
Prospective franchisees should carefully consider this lack of protection and the potential costs associated with defending against trademark claims. It would be prudent to discuss this issue further with Bumper Man and potentially seek legal advice to fully understand the risks involved.