Who controls litigation involving the Cilantro Taco Grill trademarks?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 13 — TRADEMARKS (FDD pages 35–36)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, both Cilantro Taco Grill and its affiliate have the right to control any administrative proceedings or litigation involving the Principal Marks or other Marks licensed to franchisees. This means that Cilantro Taco Grill, along with its affiliate, CTG IP LLC, will make the decisions regarding how to handle any legal issues related to the trademarks.
Cilantro Taco Grill requires franchisees to notify them immediately if they become aware of any infringement or challenges to the use of the Principal Marks. 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 authorized use of the Principal Marks. Franchisees are obligated to cooperate fully with Cilantro Taco Grill and its affiliate in defending or settling any litigation.
This arrangement is fairly typical in franchising, as franchisors need to protect their brand's trademarks. By retaining control over trademark litigation, Cilantro Taco Grill ensures consistent legal strategy and protects the overall brand integrity. Franchisees benefit from this arrangement because they are indemnified against expenses and damages if they comply with the agreement and promptly report any potential infringements or challenges.