Who has the right to control administrative proceedings or litigation involving Cilantro Taco Grill's copyrights licensed to a franchisee?
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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, 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 the franchisee. This means that if a legal issue arises concerning the trademarks or copyrights associated with the Cilantro Taco Grill brand that a franchisee is authorized to use, the franchisor and its affiliate, CTG IP LLC, will take the lead in managing the legal process.
Cilantro Taco Grill also requires the franchisee to notify them immediately if they learn of any infringement or challenge to the use of the principal marks or other marks. Furthermore, the franchisee is obligated to cooperate fully with Cilantro Taco Grill and its affiliate in defending or settling any litigation.
Cilantro Taco Grill also states that if the franchisee provides timely notice of the issue 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 protection is contingent upon the franchisee's adherence to the agreement and prompt reporting of any potential infringement or challenges.