What action must a Buona franchisee take if they become aware of an infringing use of the Buona trademarks?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately if you learn about an infringing or challenging use of the Marks. If you are in compliance with the Franchise Agreement, we will defend you against any claim brought against you by a third party alleging that your use of the Marks in accordance with the Franchise Agreement infringes upon that party's intellectual property rights. We may require your assistance, but we will control any proceeding or litigation relating to the Marks. We have no obligation to pursue any infringing users of the Marks. If we learn of an infringing user, we will take the action appropriate, but we are not required to take any action if we do not feel it is warranted. You must notify us immediately if you learn that any party is using the Marks or a trademark that is confusingly similar to the Marks. We have the sole discretion to take such action as we deem appropriate to exclusively control any litigation or administrative proceeding involving the Marks. You must not directly or indirectly contest our right to the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 48–50)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee becomes aware of any infringing use of Buona's trademarks, they must notify Buona immediately. This requirement ensures that Buona can take appropriate action to protect its brand and intellectual property.
Buona retains control over any legal proceedings related to the trademarks. While Buona will defend a franchisee against claims that their authorized use of the trademarks infringes on a third party's rights, Buona is not obligated to pursue every instance of infringement they become aware of, retaining the discretion to act only when warranted.
This arrangement is typical in franchising, as the franchisor has a vested interest in maintaining the integrity and value of its trademarks across the entire system. By requiring franchisees to report potential infringements, Buona can monitor and address unauthorized uses of its brand, which helps to protect the brand's reputation and goodwill. The franchisee must also not directly or indirectly contest Buona's right to the marks.