Who bears the cost of actions taken against infringement of the Buona marks?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately notify Franchisor in writing of any suspected infringement of, or challenge to, the validity of the ownership of, or Franchisor's and Franchisor's affiliate's right to use, the Marks.
Franchisee acknowledges that Franchisor and Franchisor's affiliate have the right, in their sole discretion, to determine whether any action will be taken on account of any possible infringement or illegal use of the Marks.
Franchisor and/or Franchisor's affiliate may prosecute the action in Franchisor's or Franchisor's affiliate's own name and may join Franchisee as a party to the action if Franchisor or Franchisor's affiliate determines it to be reasonably necessary for the continued protection and quality control of the Marks and the System.
Franchisor or Franchisor's affiliate shall bear the reasonable cost of any such action, including attorneys' fees.
Franchisee shall fully cooperate with Franchisor in any such litigation.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona or its affiliate bears the reasonable costs, including attorney's fees, for any action taken regarding possible infringement or illegal use of the Buona marks. Buona retains the right to decide whether to take action against any potential infringement. If Buona or its affiliate decides to pursue legal action, they can do so in their own name and may include the franchisee as a party if deemed necessary to protect the marks and the Buona system.
This means that as a Buona franchisee, you are responsible for notifying Buona of any suspected infringement of their trademarks. However, the financial burden of pursuing legal action against infringers falls on Buona, not the franchisee. This is a significant benefit for franchisees, as trademark litigation can be very expensive.
It is important to note that while Buona covers the costs, the franchisee is expected to fully cooperate with Buona in any such litigation. This cooperation could involve providing information, documentation, or even testimony. Franchisees should be aware that they cannot independently pursue legal action against trademark infringers without Buona's consent, as Buona retains sole discretion over these matters.