Under what condition will Buona defend a franchisee against a third-party claim alleging trademark infringement?
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. We may acquire, develop and use additional marks not listed here, and may make those marks available for your use and for use by other franchisees.
Source: Item 13 — TRADEMARKS (FDD pages 48–50)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona will defend a franchisee against a third-party claim alleging trademark infringement if the franchisee is in compliance with the Franchise Agreement. This means that as long as the franchisee is adhering to all the terms and conditions outlined in the agreement, Buona will provide a legal defense against such claims.
Buona retains control over any legal proceedings related to the trademarks, although they may require the franchisee's assistance. However, Buona is not obligated to take action against all infringing users of the marks; they will decide if action is warranted. The franchisee is required to notify Buona immediately if they become aware of any potential infringement or challenges to the use of the marks.
This protection is a significant benefit for franchisees, as trademark litigation can be costly and complex. By assuming the responsibility for defending against infringement claims, Buona reduces the potential financial and legal burden on its franchisees, provided they remain compliant with the Franchise Agreement. This also ensures that Buona maintains control over its brand and trademarks, which is crucial for consistency and quality across all franchise locations.