Who has the sole discretion and exclusive right to control litigation related to Byrider's Marks?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Byrider retains sole discretion and exclusive right to control any litigation related to its Marks. This means that if there is an infringement, challenge, or claim regarding the use of Byrider's trademarks, service marks, logos, or trade names, Byrider alone decides how to handle any resulting legal actions.
This provision has significant implications for franchisees. While franchisees are required to notify Byrider of any potential infringement or challenges to the Marks, they are prohibited from directly communicating with any party other than Byrider and its counsel regarding such matters. The franchisee must also assist Byrider in protecting its interests in any litigation or administrative proceedings.
This level of control is typical in franchising, as franchisors need to protect their brand's intellectual property consistently across all franchise locations. By centralizing control over trademark litigation, Byrider can ensure a unified legal strategy and protect the overall value of its brand. However, it also means that franchisees have limited autonomy in defending the brand's trademarks, even if the issue directly affects their specific location or operations.