Who decides whether to take action regarding possible 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 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona and its affiliates have the sole right to decide whether to take action regarding any potential infringement or illegal use of their trademarks. As a Buona franchisee, you are required to immediately inform Buona in writing if you suspect any infringement or challenges to the validity or ownership of the Buona marks.
Buona or its affiliate can then pursue legal action in their own name, and may include the franchisee in the action if deemed necessary to protect the trademarks and the Buona system. Buona will cover the reasonable costs of any such legal action, including attorney fees. The franchisee is obligated to fully cooperate with Buona in any litigation related to trademark infringement.
This means that while franchisees are responsible for reporting any potential infringement, the decision to pursue legal action rests solely with Buona. This is a typical arrangement in franchising, as the franchisor has the most at stake in protecting its brand's trademarks and ensuring consistent quality control across all franchise locations. Franchisees benefit from this arrangement because they are not financially responsible for the potentially high costs of litigation.