What is a Cilantro Taco Grill franchisee's obligation in defending trademark litigation?
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.
Source: Item 13 — TRADEMARKS (FDD pages 35–36)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding the defense of trademark litigation. Franchisees must immediately notify Cilantro Taco Grill if they become aware of any infringement or challenges to the use of the Principal Marks or other marks. After notification, Cilantro Taco Grill and its affiliate will decide on the appropriate action to take.
If a 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. Cilantro Taco Grill and its affiliate retain the right to control any administrative proceedings or litigation involving the licensed marks.
Furthermore, franchisees are required to fully cooperate with Cilantro Taco Grill and its affiliate in defending or settling any litigation related to the trademarks. Franchisees must not directly or indirectly contest Cilantro Taco Grill's or its affiliate's right to the Principal Marks or other Marks. However, Cilantro Taco Grill reserves the right to substitute different Marks if the current Marks can no longer be used, or if the substitution would benefit the System. In such cases, the franchisee may be required, at their expense, to modify or stop using any Mark, including the Principal Marks, or to use one or more additional or substitute Marks.