What is a C12 Group franchisee's obligation upon learning of an infringement or challenge to the use of any of the trademarks?

According to the 2025 C12 Group Franchise Disclosure Document, a franchisee is obligated 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 outlined in Section I.6 of the Franchise Agreement.

This notification requirement is a standard practice in franchising. It allows C12 Group to take appropriate action to protect its trademarks, which are a critical asset for the entire franchise system. By promptly reporting any potential infringement or challenge, the franchisee helps C12 Group maintain the integrity and value of its brand.

Furthermore, the FDD states that C12 Group will indemnify, defend, and hold the franchisee harmless if the franchisee's use of C12 Group's trademarks, in accordance with the Franchise Agreement, infringes upon the intellectual property rights of a third party. This protection is contingent upon the franchisee's adherence to the agreement and immediate notification of any potential issues.

In addition to the notification requirement, the franchisee also agrees not to directly or indirectly contest C12 Group's rights to its trademarks, trade secrets, or proprietary materials and processes. This provision reinforces the franchisee's commitment to upholding C12 Group's intellectual property rights and ensuring the consistent application of the brand's identity and operational methods.