Is C12 Group obligated to defend a franchisee's use of proprietary items or processes?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree not to contest C12's interest in its proprietary information. Although C12 is not obligated to defend your use of these items or processes, C12 will pursue resolution which in its judgment is in the best overall interest of the C12 community. If C12 decides to add, modify or discontinue the use of an item or process covered by a patent or copyright, you must also do so.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group is not obligated to defend a franchisee’s use of proprietary items or processes. However, C12 Group will pursue resolution which in its judgment is in the best overall interest of the C12 community. If C12 Group decides to add, modify, or discontinue the use of an item or process covered by a patent or copyright, the franchisee must also comply.
While C12 Group isn't obligated to defend the franchisee's use of proprietary items, they do agree to indemnify, defend, and hold the franchisee harmless if the franchisee's use of C12 Group's trademarks infringes upon the intellectual property rights of a third party. The franchisee is required to notify C12 Group immediately if they become aware of any infringement or challenge to their use of C12 Group's trademarks.
This means that while C12 Group provides some protection regarding trademark use, franchisees should be aware that they ultimately bear some risk related to the use of proprietary items and processes beyond trademarks. It is important for prospective franchisees to fully understand the scope of intellectual property protection offered and to potentially seek independent legal advice to assess their risks.