If a Byrider franchisee becomes aware of a potential trademark infringement, what is the franchisee required to do immediately?
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, if a franchisee becomes aware of any potential infringement or challenge to the use of Byrider's trademarks, or any claim by another party regarding rights to similar trademarks, the franchisee must immediately notify Byrider in writing. This obligation ensures that Byrider is promptly informed of any potential threats to its brand and intellectual property.
The franchisee is explicitly prohibited from communicating directly or indirectly with any party other than Byrider, Byrider's counsel, and its own counsel regarding the infringement, challenge, or claim. This restriction centralizes the handling of such matters with Byrider, allowing them to control the legal strategy and protect their trademarks effectively.
Byrider retains sole discretion and the exclusive right to take any action it deems necessary to manage litigation, proceedings with the U.S. Patent and Trademark Office, or other administrative actions related to the infringement, challenge, or claim. The franchisee is obligated to execute documents, provide assistance, and perform any actions deemed necessary by Byrider's counsel to protect Byrider's interests in any litigation or administrative proceedings, ensuring full cooperation in defending the trademarks. This is a fairly standard clause in franchise agreements, as the franchisor is typically responsible for protecting the brand's intellectual property.