Is Burros Fries liable for any losses or damages resulting from a trademark claim?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
documents pertaining to the Business as we may request.
15. SPECIFIC OBLIGATIONS OF FRANCHISEE RELATING TO USES OF NAMES AND MARKS
A. Names and Marks are Owned by Franchisor
We warrant with respect to the proprietary Names and Marks that:
-
- We will take such steps as we deem reasonably necessary to preserve and protect the ownership and validity of such Names and Marks; and
-
- Franchisee acknowledges that there may be third party pre-existing users or applicants/registrants of trademarks, trade names, or business names similar to the Names and Marks. We and Franchisee shall investigate such use, applications, or registrations, if any, and we shall in our sole discretion decide on the appropriate action to be taken. Any unsuccessful challenge made by us shall not constitute a ground for the termination of this Agreement. In the event we determine in our sole judgment that challenging any such third party's use of the Marks will not likely be successful, or would not be economically feasible to achieve, or if Franchisee shall be required to cease using the Marks (or any of them) by court order, or as a result of any settlement of any such trademark claim by a prior registrant or any pre-existing user, or any other such trademark claim, or if we shall deem it necessary or appropriate to change the name of the Franchise in order to mitigate any potential exposure or damages arising under any trademark claim, Franchisee shall promptly change the name of its Franchise, and thereafter utilize an alternative name established by us. We shall not otherwise be liable for any losses or any consequential damages, incidental damage, exemplary damages, special damages, including lost future profits, resulting from or arising out of any trademark service mark, and/or unfair competition claim(s).
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, Burros Fries will not be liable for losses or damages resulting from a trademark claim under certain circumstances. Specifically, if Burros Fries determines that challenging a third party's use of similar trademarks would not be successful or economically feasible, or if a court order requires the franchisee to stop using the marks, or if Burros Fries deems it necessary to change the franchise name to mitigate potential damages from a trademark claim, the franchisee must change the name of their franchise to an alternative name provided by Burros Fries.
Burros Fries is not liable for any losses, consequential, incidental, exemplary, or special damages, including lost future profits, arising from trademark, service mark, or unfair competition claims. Additionally, Burros Fries has no obligation to reimburse the franchisee for any costs, causes of action, damages, expenses, fines, liabilities, or penalties resulting from a trademark, service mark, logo, or trade name change.
This means that as a Burros Fries franchisee, you bear the risk of potential trademark disputes. If a conflict arises, you may be required to change your business's name at your own expense, and Burros Fries will not compensate you for any resulting losses or damages. This is a significant risk to consider, as rebranding can be costly and disruptive to your business. It is important to conduct thorough due diligence and understand the potential for trademark conflicts in your territory before investing in a Burros Fries franchise.