What is a C12 Group franchisee required to do if they learn of a trademark infringement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee's use of Franchisor's trademarks in accordance with this Agreement infringes upon the intellectual property rights of a third party. Franchisee agrees to notify Franchisor immediately if and when Franchisee learns of an infringement or challenge to Franchisee's use of any of Franchisor's trademarks. Franchisee shall not directly or indirectly contest Franchisor's right to, or use of, the C12 trademarks, trade secrets, or proprietary materials and processes that are part of Franchisor's business format.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee is required to notify C12 Group immediately if they become aware of any infringement or challenge to the use of C12 Group's trademarks. This requirement is part of the franchise agreement, which outlines the terms and conditions for operating a C12 Group franchise.
This provision protects C12 Group's brand and intellectual property. By requiring franchisees to report any potential infringement, C12 Group can take timely action to protect its trademarks and prevent unauthorized use. This is a standard practice in franchising, as the brand's reputation and recognition are critical to the success of all franchisees within the system.
For a prospective C12 Group franchisee, this means being vigilant about the use of the C12 Group trademarks in their territory and reporting any suspected misuse to C12 Group promptly. Failure to do so could potentially result in a breach of the franchise agreement. However, C12 Group agrees to indemnify, defend, and hold the Franchisee harmless in the event that Franchisee's use of Franchisor's trademarks in accordance with this Agreement infringes upon the intellectual property rights of a third party.