If Chatime undertakes the defense of legal proceedings, what is a Chatime franchisee required to do?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
If we undertake the defense or prosecution of any such legal proceeding, you are required to execute any documents and do such acts as may be necessary in our counsel's opinion to carry out such defense or prosecution.
Source: Item 13 — Trademarks (FDD pages 38–40)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if Chatime decides to defend or prosecute any legal proceeding related to the use of their trademarks, franchisees are obligated to cooperate fully. This means a franchisee must sign any documents and perform any actions that Chatime's legal counsel deems necessary to carry out the defense or prosecution.
This requirement places a significant responsibility on the franchisee. It means they must be responsive and willing to follow the directions of Chatime's legal team, even if it requires time, effort, or potentially some level of inconvenience. The franchisee essentially becomes an extension of Chatime's legal strategy in these specific cases.
While Chatime retains control over legal proceedings involving its trademarks, the franchisee's cooperation is essential. This clause ensures that Chatime can effectively protect its brand and intellectual property, while also binding the franchisee to support those efforts actively. Franchisees should understand this obligation and be prepared to fulfill it should the need arise.