If my right to use the Carvel trademark with application number 98,426,727 is challenged, what might I have to do?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
At this time, we do not have a registration for this trademark. Therefore, this trademark does not have many of the legal benefits and rights as a federally-registered trademark. If your right to use this trademark is challenged, you may have to change to an alternative trademark which will increase your expenses.
If you learn of any claim against you for alleged infringement, unfair competition, or similar claims about the Proprietary Marks, you must promptly notify us. We will promptly take the action we consider necessary to defend you. We must indemnify you for any action against you by a third party based solely on alleged infringement, unfair competition, or similar claims about the Proprietary Marks. You may not settle or compromise any of these claims without our written consent. We have the right to control, defend, and settle any claim at our sole expense using our own counsel. You must cooperate with us in the defense. We will have no obligation to defend or indemnify you if the claim against you relates to your use of the Proprietary Marks in violation of the Franchise Agreement.
You must comply with our instructions to modify or discontinue use of any Proprietary Mark or to adopt or use additional or substituted Proprietary Marks. We will not be liable to you for any resulting expenses.
Source: Item 13 — Trademarks (FDD pages 79–81)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, application number 98,426,727 does not have a registration at this time. Therefore, it does not have many of the legal benefits and rights as a federally-registered trademark. If your right to use this trademark is challenged, you may have to change to an alternative trademark which will increase your expenses.
If a Carvel franchisee learns of any claim against them for alleged infringement, unfair competition, or similar claims about the Proprietary Marks, they must promptly notify Carvel. Carvel will promptly take the action it considers necessary to defend the franchisee and must indemnify the franchisee for any action against them by a third party based solely on alleged infringement, unfair competition, or similar claims about the Proprietary Marks. The franchisee may not settle or compromise any of these claims without Carvel's written consent. Carvel has the right to control, defend, and settle any claim at its sole expense using its own counsel, and the franchisee must cooperate with Carvel in the defense.
However, Carvel will have no obligation to defend or indemnify a franchisee if the claim against them relates to their use of the Proprietary Marks in violation of the Franchise Agreement. Carvel franchisees must comply with Carvel's instructions to modify or discontinue use of any Proprietary Mark or to adopt or use additional or substituted Proprietary Marks. Carvel will not be liable to the franchisee for any resulting expenses.
These stipulations are typical in franchise agreements, as the franchisor needs to protect its brand and trademarks while also ensuring franchisees adhere to the established brand standards. It is important for a prospective Carvel franchisee to understand these conditions and potential costs associated with trademark challenges.