With whom is a Byrider franchisee prohibited from communicating regarding infringement of the Marks, other than the Company and its counsel?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3 Infringement. The Franchisee shall immediately notify the Company in writing of any apparent infringement of or challenge to the Franchisee's use of the Marks and of any claim by any person of any rights in the Marks or in any similar trade name, trademark, service mark or logo of which the Franchisee becomes aware. The Franchisee shall not directly or indirectly communicate with any person other than the Company, Company's counsel and its counsel in connection with any such infringement, challenge or claim. The Company shall have sole discretion and exclusive right to take such action as it deems appropriate to control any litigation, U.S. Patent and Trademark Office proceeding or other administrative proceeding arising out of such infringement, challenge or claim or otherwise relating to the Marks. The Franchisee shall execute any and all instruments and documents, render such assistance, and do such acts and things as may, in the opinion of the Company's counsel, be necessary or advisable to protect and maintain the interests of the Company in any such litigation or administrative proceedings, or to otherwise protect and maintain the interest of the Company in the Marks.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, a franchisee is required to notify Byrider immediately in writing of any potential infringement or challenges to the use of Byrider's Marks. The franchisee is explicitly restricted from communicating directly or indirectly with any person regarding such infringement, challenge, or claim, except for Byrider and Byrider's legal counsel. This ensures that Byrider maintains control over any legal proceedings related to its trademarks.
This provision is designed to protect Byrider's brand and intellectual property. By centralizing communication and legal strategy with Byrider and its counsel, the company can ensure a consistent and effective approach to addressing any infringement issues. This prevents franchisees from taking actions that could potentially harm the brand or create legal complications.
For a prospective Byrider franchisee, this means that any concerns about trademark infringement must be immediately reported to Byrider. The franchisee must then rely on Byrider to take appropriate action, and must not independently engage with any third parties regarding the matter. Failure to comply with this requirement could be considered a breach of the franchise agreement.
This type of clause is common in franchise agreements, as franchisors typically want to maintain tight control over their brand and trademarks. It is important for franchisees to understand and adhere to these requirements to avoid potential legal issues and maintain a good working relationship with the franchisor.