What specific action triggers the 10-day notice requirement for a Carbones Pizzeria franchisee regarding trademark infringement claims?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee must provide notice to Carbones Pizzeria of any trademark infringement claim within ten days of receiving the claim in order to be eligible for indemnification. This indemnification covers liability to third parties resulting from claims that the franchisee's use of the Names and Marks infringes on the trademark rights of a third party.
This means that if a Carbones Pizzeria franchisee is sued for trademark infringement related to their use of the Carbones Pizzeria trademarks, they must notify the franchisor within 10 days of receiving the claim. Failure to do so could void the franchisee's right to be indemnified by Carbones Pizzeria in the event of a lawsuit.
Carbones Pizzeria retains 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. This is a common practice in franchising, as the franchisor has a vested interest in protecting its trademarks and brand reputation.