If a Carbones Pizzeria franchisee faces an infringement claim, when must they notify the franchisor?
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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 22–23)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if a franchisee faces a trademark infringement claim related to their use of the Carbones Pizzeria names and marks, they must notify the franchisor within ten days of receiving the claim. This notification is a condition for Carbones Pizzeria to indemnify the franchisee against liability to third parties.
This means that if a franchisee is sued for using the Carbone's Pizzeria name in a way that someone else claims infringes on their trademark rights, the franchisee must inform Carbones Pizzeria about the claim promptly. The franchisee must also allow Carbones Pizzeria to control the defense of the claim, including any settlement negotiations or appeals.
By mandating a quick notification timeframe, Carbones Pizzeria aims to promptly address potential legal issues and protect its brand. Failing to notify Carbones Pizzeria within the specified timeframe could result in the franchisee losing their right to be indemnified, meaning they would be responsible for covering their own legal costs and any potential damages awarded to the third party. This is a fairly standard clause in franchise agreements, as franchisors typically want to control the defense of their trademarks.