Is Burros Fries obligated to protect a franchisee's right to use the Marks?

According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries is not contractually obligated to protect the Marks or a franchisee's right to use them. However, as a matter of corporate policy, Burros Fries intends to defend the Marks vigorously. The Franchisee does not have the authority to institute any litigation, file any arbitration, or institute any request for mediation regarding the Marks, nor does the Franchisee have any authority to enter into any settlement negotiations. Burros Fries will control all such litigation, arbitration, and mediation involving the Marks.

This means that while Burros Fries states its intention to defend its trademarks, it is not legally bound to do so. This could leave a franchisee vulnerable if the trademarks are infringed upon by a third party. The franchisee is also prohibited from taking any legal action themselves regarding the Marks.

Prospective franchisees should consider the implications of this policy. While Burros Fries expresses an intent to defend the Marks, the lack of a contractual obligation means that the level of support and resources dedicated to trademark protection could change at any time. It is important for potential franchisees to discuss this with Burros Fries to understand the scope of their corporate policy and the potential risks involved.