Is Chesters required to participate in a franchisee's defense in a proceeding involving a copyright?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We need not protect or defend copyrights, although we intend to do so if in the system's best interests. We have the right to control any action we choose to bring, even if you voluntarily bring the matter to our attention. We need not participate in your defense and/or indemnify you for damages or expenses in a proceeding involving a copyright.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 33–34)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, Chesters is not required to participate in a franchisee's defense or indemnify them for damages or expenses if a proceeding involving a copyright occurs. However, Chesters retains the right to control any action they choose to bring, even if the franchisee brings the matter to their attention.
This means that if a franchisee is sued for copyright infringement related to the Chesters system, Chesters is not obligated to provide legal assistance or cover any resulting costs. This could leave the franchisee responsible for significant legal fees and potential damages.
While Chesters states they intend to protect and defend copyrights if it is in the system's best interest, this is not a guarantee of support for individual franchisees. Prospective franchisees should be aware of this potential risk and consider obtaining their own legal counsel and insurance to protect themselves against copyright-related claims.