What happens if a third party claims rights to the Byrider Marks?
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.
- 8.4 Substitutions. If there is a claim by any party that its right to any use of the Marks are superior and if the Company determines that such claim is legally meritorious or if the Company determines, in its sole discretion, that it is advisable for the Company and/or the Franchisee to modify or discontinue the use of any of the Marks, and/or use one or more additional or substitute Marks then, upon notice from the Company, the Franchisee, at its expense, will immediately make such changes and amendments to the Marks and all materials on which the Marks are displayed as may be required by the Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider franchisees must immediately inform the company in writing if they become aware of any infringement or challenges to the use of the Byrider Marks, or any claims by a third party regarding rights to the Marks. The franchisee is prohibited from communicating directly with anyone other than Byrider, its counsel, or Byrider's counsel regarding such matters. Byrider retains sole discretion and exclusive right to manage any litigation or administrative proceedings related to these challenges. The franchisee is obligated to assist Byrider by executing documents and providing necessary support to protect Byrider's interests in the Marks.
Furthermore, if a third party asserts a superior right to the Marks, Byrider has the authority to determine if the claim is legally valid or if it's advisable to modify or discontinue the use of certain Marks. In such cases, Byrider will notify the franchisee, who must then, at their own expense, promptly make the required changes to the Marks and all materials displaying them.
This means that a Byrider franchisee could be required to change their signage, marketing materials, and other branded items at their own cost if Byrider determines it necessary to respond to a third-party claim. While Byrider handles the legal defense, the franchisee bears the financial burden of implementing any required changes to branding. This clause protects Byrider's trademarks while potentially creating unexpected expenses for the franchisee.