What is the deadline to provide notice to Carbones Pizzeria of any trademark infringement claim?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. Franchisor shall indemnify Franchisee against liability to third parties resulting from claims by third parties that such Franchisee's use of the Names and Marks infringes trademark rights of the third party. Franchisor will not indemnify against the consequences of Franchisee's use of Franchisor's trademark except those uses made in accordance with the requirements of provisions of this Agreement (including any requirement imposed by Franchisor to modify or discontinue the use of any name or mark and/or use one or more additional or substitute names or marks). As a condition to such indemnification, Franchisee must provide notice to Franchisor of any such claim within ten (10) days of its receipt of a claim and tender the defense of the claim to Franchisor. If Franchisor accepts the tender of defense, Franchisor has the right to manage the defense of the claim, including the right to compromise, settle or otherwise resolve the claim and to determine whether to appeal a final determination of the claim.
Source: Item 13 — TRADEMARKS (FDD pages 21–22)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, if a third party claims that a franchisee's use of the Carbone's Pizzeria trademarks infringes on their trademark rights, the franchisee must notify Carbones Pizzeria of the claim within ten days of receiving it. This notification is a condition for Carbones Pizzeria to indemnify the franchisee against any resulting liabilities. Indemnification means that Carbones Pizzeria will protect the franchisee from financial loss.
Following notification, Carbones Pizzeria has the right to manage the defense of the claim, which includes the ability to compromise, settle, or otherwise resolve the claim, and to decide whether to appeal any final determinations. This means that while the franchisee is required to provide timely notice, Carbones Pizzeria retains control over the legal strategy and decisions related to the infringement claim.
This requirement is fairly standard in franchising, as franchisors typically want to control the defense of their trademarks. Failing to provide notice within the specified timeframe could jeopardize the franchisee's right to indemnification, potentially leaving them responsible for legal costs and damages associated with the infringement claim. Therefore, it is crucial for a Carbones Pizzeria franchisee to promptly report any such claims to the franchisor.