Does Chocolate Fish Coffee know of any copyright infringement that could materially affect franchisees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
12.3 Infringement.
(a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Chocolate Fish Franchising shall defend Franchisee (at Chocolate Fish Franchising's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Chocolate Fish Franchising will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
(b) Infringement by Third Party. Franchisee shall promptly notify Chocolate Fish Franchising if Franchisee becomes aware of any possible infringement of a Mark by a third party. Chocolate Fish Franchising may, in its sole discretion, commence or join any claim against the infringing party.
(c) Control. Chocolate Fish Franchising shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 31–32)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Chocolate Fish Coffee addresses the issue of trademark infringement in Section 12.3. It states that Chocolate Fish Franchising will defend the franchisee against any action alleging infringement of a mark, provided the franchisee has used the marks in accordance with the franchise agreement. Additionally, Chocolate Fish Franchising will cover expenses and damages if the action is resolved unfavorably to the franchisee.
Furthermore, the agreement requires the franchisee to promptly notify Chocolate Fish Franchising if they become aware of any potential infringement of a mark by a third party. The franchisor retains the exclusive right to control any legal action related to infringement of the marks.
This section of the FDD outlines the responsibilities and protections for both the franchisor and franchisee regarding trademark usage and potential infringement issues. It does not explicitly state whether Chocolate Fish Coffee is aware of any current copyright infringements that could materially affect franchisees. A prospective franchisee should seek clarification from Chocolate Fish Coffee regarding any known potential or existing infringements and their potential impact.