Who maintains the discretion to take action regarding trademark infringement claims related to Casiola's Licensed Marks?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to provide us with written notice of any claims that you may become aware of respecting the Licensed Marks, including your use of the Licensed Marks and/or any claim associated with a third party's use of a trademark that is identical or confusingly similar to the Licensed Marks. We maintain the exclusive discretion to take any and all actions, or to refrain from any action, that we believe to be appropriate in response to any trademark infringement, challenge or claim. As between us, we possess the sole right to exclusively control any and all litigation, legal proceedings, administrative proceedings and/or settlement(s) involving any actual or alleged infringement, challenge or claim relating to the Licensed Marks. You must sign all documents, instruments and agreements and undertake the actions that we, with the advice of our legal counsel, determine to be necessary or advisable for the protection and/or maintenance of our interests in the Licensed Marks in any legal proceeding, administrative proceeding or as may be otherwise determined by us. As to the foregoing, we will reimburse you for the reasonable out-of-pocket administrative expenses that you incur and pay in complying with our written instructions.
We will protect your right to use the Licensed Marks and other related rights and protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and otherwise, as we instruct you. We will indemnify you against direct damages for trademark infringement in a proceeding arising out of your use of the Licensed Marks, provided your use of the Licensed Marks comply with the terms of your Franchise Agreement, the Manuals, our written instructions, and that you have timely notified us of the claim, have given us sole control of the defense and settlement of the claim, and you are in compliance with your Franchise Agreement. If we defend the claim, we have no obligation to indemnify or reimburse you with respect to any fees or disbursements of any attorney that you retain.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola retains exclusive discretion regarding actions related to trademark infringement claims. Casiola requires franchisees to provide written notice of any claims related to the Licensed Marks, including any third-party use of confusingly similar trademarks.
Casiola maintains the exclusive right to decide whether to take action, or refrain from action, in response to any trademark infringement, challenge, or claim. Casiola also possesses the sole right to control any litigation, legal proceedings, administrative proceedings, and/or settlements involving actual or alleged infringement claims related to the Licensed Marks. Franchisees are required to sign documents and undertake actions deemed necessary by Casiola and its legal counsel to protect Casiola's interests in the Licensed Marks.
Casiola will reimburse franchisees for reasonable out-of-pocket administrative expenses incurred while following Casiola's written instructions related to these actions. Casiola also commits to protecting the franchisee's right to use the Licensed Marks, provided the franchisee adheres to the Franchise Agreement, the manuals, and Casiola's instructions. Casiola will indemnify franchisees against direct damages for trademark infringement arising from their use of the Licensed Marks, provided the franchisee complies with the Franchise Agreement, the manuals, and Casiola's written instructions, and has given timely notification and control of the claim to Casiola.