Does the Franchise Agreement require Canine Dimensions to participate in a franchisee's defense in a trademark proceeding?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately when you learn about an infringement of or challenge to your use of a Mark. We will take the action we think appropriate and control any litigation or other proceeding arising out of any such infringement or challenge to the Marks. The Franchise Agreement does not require us to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a trademark licensed by us to you, or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 25–26)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the Franchise Agreement does not require Canine Dimensions to participate in a franchisee's defense in a trademark proceeding. While franchisees must notify Canine Dimensions immediately if they learn of any trademark infringement or challenges to their use of a mark, Canine Dimensions retains the right to decide what action to take.
Specifically, Canine Dimensions will decide on the appropriate action and control any litigation or other proceeding related to infringement or challenges to the marks. The Franchise Agreement does not obligate Canine Dimensions to participate in the franchisee's defense or to cover expenses or damages if the franchisee is involved in an administrative or judicial proceeding concerning a licensed trademark, especially if the outcome is unfavorable to the franchisee.
This means that if a franchisee faces a trademark dispute, they cannot rely on Canine Dimensions to automatically step in and provide legal defense or financial assistance. The franchisee would likely be responsible for their own legal costs and any resulting damages. This is a crucial point for potential franchisees to consider, as trademark disputes can be costly and time-consuming.