Is a Buona franchisee required to cooperate with the franchisor in litigation regarding mark infringement?
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, a franchisee is required to cooperate with Buona in any litigation regarding mark infringement. The FDD states that the franchisee must notify Buona in writing of any suspected infringement or challenges to the validity of the ownership or right to use the marks.
Buona has the right to determine whether any action will be taken regarding possible infringement or illegal use of the marks. Buona may prosecute the action in its own name and may include the franchisee as a party if it is reasonably necessary for the protection and quality control of the marks and the system.
The FDD specifies that the franchisee must fully cooperate with Buona in any such litigation. Buona or its affiliate will bear the reasonable costs of any action, including attorney's fees. This clause ensures that Buona can protect its brand and system standards, while also placing a responsibility on the franchisee to assist in these efforts.