What action must a Cilantro Taco Grill franchisee take upon learning of a trademark infringement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
rimary Principal Marks that could materially affect your use.
You must notify us immediately when you learn about an infringement of or challenge to your use of the Principal Marks or other Marks. Our affiliate and we will take any action we think appropriate and, if you have given us timely notice and are in full compliance with the Franchise Agreement, we will indemnify you for all expenses and damages arising from any claim challenging your authorized use of the Principal Marks or other Marks. Our affiliate and we have the right to control any administrative proceedings or litigation involving the Principal Marks or other Marks licensed by us to you. You must cooperate fully with our affiliate and us in defending and/or settling the litigation.
We reserve the right to substitute different Marks if we can no longer use the current Marks, or if we determine that substitution of different Marks will be beneficial to the System. In such event, we may require you, at your
expense, to modify or stop using any Mark, including the Principal Marks, or to use one or more additional or substitute Marks.
You must not directly or indirectly contest our affiliate's right, or our right, to the Principal Marks or other Marks.
Source: Item 13 — TRADEMARKS (FDD pages 35–36)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, a franchisee must immediately notify Cilantro Taco Grill upon learning of any infringement or challenge to the use of the Principal Marks or other Marks. After notification, Cilantro Taco Grill and its affiliate, CTG IP LLC, will decide what action they deem appropriate.
If the franchisee provides timely notice and is in full compliance with the Franchise Agreement, Cilantro Taco Grill will indemnify the franchisee for all expenses and damages arising from any claim challenging the franchisee's authorized use of the Principal Marks or other Marks. This means Cilantro Taco Grill will cover the franchisee's costs if they are sued for using the trademarks, provided the franchisee has followed all the rules in the Franchise Agreement.
Cilantro Taco Grill and its affiliate retain the right to control any administrative proceedings or litigation involving the Principal Marks or other Marks licensed to the franchisee. The franchisee is required to cooperate fully with Cilantro Taco Grill and its affiliate in defending or settling any such litigation. This ensures that Cilantro Taco Grill maintains control over its brand and legal strategy. Franchisees must not directly or indirectly contest Cilantro Taco Grill's rights to the Principal Marks or other Marks.
Cilantro Taco Grill also reserves the right to substitute different Marks if they can no longer use the current Marks, or if they determine that substitution of different Marks will be beneficial to the System. In such an event, Cilantro Taco Grill may require the franchisee, at the franchisee's expense, to modify or stop using any Mark, including the Principal Marks, or to use one or more additional or substitute Marks. This means a franchisee may have to pay to change signage or marketing materials if Cilantro Taco Grill updates its branding.