What must a Buns On Fire franchisee do if they notice an infringement of the Proprietary Marks?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us of any apparent infringement of or challenge to your use of any Proprietary Mark or claim by any person of any rights in any Proprietary Mark. You may not communicate with anyone except us and our counsel with respect to any infringement, challenge or claim. We will have sole discretion to take action as we deem appropriate in connection with any infringement, challenge or claim, and the sole right to exclusively control any litigation or other proceeding arising out of any infringement, challenge or claim relating
to any Proprietary Mark. You must sign any and all instruments and documents, give assistance, and do any acts and things as may in the opinion of our counsel be necessary or advisable in order to protect and maintain our interests in any litigation or proceeding or otherwise to protect and maintain our interests in the Proprietary Marks. We will reimburse you for the reasonable out-of-pocket expenses you incur and pay in complying with these requirements; except if any action we take with respect to any claim or proceeding results in any monetary recovery for you which exceeds your costs, then you must pay your own costs and share pro-rata in our costs up to the amount of the monetary recovery.
The Franchise Agreement does not require us to take affirmative action when notified of any infringements of or challenges to the Proprietary Marks. We have the right to control any litigation or administrative proceedings involving the Proprietary Marks. We will indemnify you against and reimburse you for all damages for which you are held liable in any proceeding arising out of your use of any Proprietary Mark according to and in compliance with the applicable agreement, and for all costs you reasonably incur in the defense of any claim in which you are named as a party, if you have timely notified us of the claim, have given us sole control of the defense and settlement of any claim and have otherwise complied with the applicable agreement. If any action taken by us with respect to any claim or proceeding results in any monetary recovery for you which exceeds your costs, then you must pay your own costs and share pro-rata in our costs up to the amount of the monetary recovery.
If it becomes advisable at any time in our sole judgment for you to modify or discontinue the use of any Proprietary Mark and/or for the Franchise Business to use one or more additional or substitute trade or service marks, you must immediately comply with our directions to modify or otherwise discontinue the use of the Proprietary Marks and/or to use one or more additional or substitute trademarks, service marks, logos or commercial symbols or substitute trade dress after our notice to you. Neither we nor our affiliates have any obligation to reimburse you for any expenditure you make in connection with any discontinuance or modification.
Source: Item 13 — TRADEMARKS (FDD pages 35–37)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, a franchisee must immediately notify Buns On Fire if they notice any apparent infringement of the Proprietary Marks. The franchisee is not allowed to communicate with anyone else, except Buns On Fire and their counsel, regarding the infringement.
Buns On Fire retains sole discretion regarding any action taken in response to the infringement, challenge, or claim. They also have the exclusive right to control any litigation or other proceeding arising from the infringement. The franchisee is obligated to sign documents, provide assistance, and perform any actions deemed necessary by Buns On Fire's counsel to protect the franchisor's interests in any litigation or proceeding.
The franchisee will be reimbursed for reasonable out-of-pocket expenses incurred while complying with these requirements, unless any action results in monetary recovery exceeding the franchisee's costs. In that case, the franchisee must cover their own costs and share proportionally in Buns On Fire's costs, up to the amount of the monetary recovery.
Buns On Fire is not required to take action when notified of infringements. They will indemnify the franchisee against damages they are held liable for in any proceeding arising out of the franchisee's use of any Proprietary Mark, provided the franchisee has notified Buns On Fire of the claim, given them sole control of the defense, and otherwise complied with the agreement. If Buns On Fire decides it is necessary to modify or discontinue the use of any Proprietary Mark, the franchisee must immediately comply with their directions.