Who controls any copyright litigation related to the Cinnaholic franchise?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us of any unauthorized use of our copyrighted materials or any unauthorized use or disclosure of confidential information, including by your employees. You must notify us of any challenge to your right to use or the ownership of any copyrighted materials or confidential information. We are not required to protect or defend our copyrights, although we intend to do so when it is in the best interests of the CINNAHOLIC® franchise system. We have the exclusive right to control any copyright litigation. We have the right to keep all sums obtained in settlement or as a damages award in any proceeding or litigation without any obligation to share any portion of the settlement sums or damages award with you. While we are not required to participate in your defense or to indemnify you for damages or expenses you incur if you are a party to any administrative or judicial proceeding involving our confidential information or other information in which we claim common law rights and copyright protection, we may reimburse you for your liability and reasonable costs in connection with defending our confidential information and other information in which we claim common law rights and copyright protection.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 39–40)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic retains exclusive control over any copyright litigation pertaining to the franchise system. This means that Cinnaholic, not the franchisee, has the sole right to manage and direct any legal proceedings related to the brand's copyrighted materials.
This control extends to the financial outcomes of such litigation. Cinnaholic is entitled to keep all sums obtained from settlements or damages awarded in these cases, without any obligation to share these proceeds with franchisees. This arrangement is typical in franchising, as the franchisor owns the intellectual property and bears the costs of protecting it.
While Cinnaholic is not required to participate in a franchisee's defense or indemnify them in proceedings involving confidential or copyrighted information, they may choose to reimburse the franchisee for liabilities and reasonable costs incurred in defending Cinnaholic's confidential information. However, Cinnaholic intends to protect and defend their copyrights when it is in the best interest of the Cinnaholic franchise system.
This arrangement underscores the importance of franchisees adhering to the franchise agreement and protecting Cinnaholic's intellectual property. Franchisees are required to promptly notify Cinnaholic of any unauthorized use of copyrighted materials or confidential information. This notification is crucial, as Cinnaholic's ability to defend its copyrights depends on timely information about potential infringements.