What must a Canopy Lawn Care franchisee do if they learn about an infringement of the Marks?
Canopy_Lawn_Care 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 the Marks. We may take whatever action we deem necessary to protect the unauthorized use of the Marks and you must cooperate with us. We have the right to control any administrative proceedings or litigation involving the Marks. If we require you to join in any action, we will pay for your out-of-pocket expenses. We are not required to participate in your defense 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.
You must modify or discontinue the use of a Mark if we modify or discontinue the Mark. If this happens, we will reimburse you for your tangible out of pocket cost of compliance (for example, changing letterhead and business cards). You must not directly or indirectly contest our rights to the Marks, or any other trademarks, trade names, service marks, logos, trade secrets or business techniques that are part of our business.
Source: Item 13 — TRADEMARKS (FDD pages 41–42)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, a franchisee must immediately notify Canopy Lawn Care if they become aware of any infringement or challenge to their use of the Marks. Following notification, Canopy Lawn Care has the authority to take any action it deems necessary to address the unauthorized use of the Marks, and the franchisee is obligated to cooperate with Canopy Lawn Care in these efforts. Canopy Lawn Care retains the right to control any administrative proceedings or litigation related to the Marks.
If Canopy Lawn Care requires the franchisee to participate in any legal action, Canopy Lawn Care will cover the franchisee's out-of-pocket expenses. However, Canopy Lawn Care is not obligated to defend the franchisee or cover their expenses or damages if the franchisee is involved in an administrative or judicial proceeding concerning a trademark licensed to them by Canopy Lawn Care, especially if the proceeding's outcome is unfavorable to the franchisee.
Furthermore, if Canopy Lawn Care modifies or discontinues the use of a Mark, the franchisee must also modify or discontinue its use. In such cases, Canopy Lawn Care will reimburse the franchisee for the tangible, out-of-pocket costs incurred in complying with these changes, such as the cost of updating letterhead and business cards. The franchisee is prohibited from directly or indirectly contesting Canopy Lawn Care's rights to the Marks or any other trademarks, trade names, service marks, logos, trade secrets, or business techniques associated with the business.