If Chocolate Bash notifies a franchisee of copyright infringement, can they require the franchisee to discontinue using the subject matter?

According to Chocolate Bash's 2024 Franchise Disclosure Document, Chocolate Bash retains the right to require franchisees to modify or discontinue using material covered by their copyrights. This means that if Chocolate Bash faces a copyright issue related to something the franchisee is using, they can instruct the franchisee to stop using the copyrighted material.

This clause gives Chocolate Bash significant control over the materials used in the franchise operation and protects them from potential legal issues related to copyright infringement. It also means that a Chocolate Bash franchisee may have to adapt their business practices or materials if Chocolate Bash identifies a copyright concern. This could involve changing marketing materials, operational procedures, or other aspects of the business that rely on the copyrighted material.

It is important to note that Chocolate Bash does not have an obligation to protect its copyrights or defend franchisees against claims arising from their use of copyrighted items. Furthermore, the franchise agreement does not require Chocolate Bash to take affirmative action upon notification of copyright infringement, and they are not required to participate in the defense of a franchisee or indemnify them for expenses or damages in a copyright-related proceeding. Franchisees should be aware of this potential risk and factor it into their business planning and insurance considerations.