What must a Cinnaholic franchisee do if they become aware of unauthorized use of the mark?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
he action we think appropriate. We have the right to exclusively control any litigation, USPTO proceeding, or other proceeding arising out of any infringement, challenge, or claim or otherwise relating to any Mark.
You must notify us promptly of any unauthorized use of the Mark of which you have knowledge or of any challenge to the validity of our ownership of or our right to license others to use the Mark. We will take the action, if any, we believe to be appropriate. We have the right, but no obligation, to initiate, direct, and control any litigation or administrative proceeding relating to the Mark, including, but not limited to, any settlement. We will be entitled to retain any and all proceeds, damages, and other sums, including attorneys' fees, recovered or owed to us or our affiliates in connection with any such action. You must execute all documents and, render any other assistance we may deem necessary to any such proceeding or any effort to maintain the continued validity and enforceability of the Mark. We will defend you against any third party claim, suit, or demand arising out of your use of the Mark.
Source: Item 13 — TRADEMARKS (FDD pages 37–39)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the brand's trademarks. If a Cinnaholic franchisee becomes aware of any unauthorized use of the Cinnaholic mark, they must promptly notify Cinnaholic. This requirement ensures that Cinnaholic can take appropriate action to protect its brand and intellectual property.
Cinnaholic retains control over any legal actions related to the mark, including litigation or administrative proceedings. Cinnaholic has the right, but not the obligation, to initiate, direct, and control any litigation or administrative proceeding relating to the Mark, including any settlement. Furthermore, Cinnaholic is entitled to retain any proceeds, damages, or other sums, including attorneys' fees, recovered in connection with such actions. Franchisees are required to assist Cinnaholic by executing documents and providing any necessary assistance for these proceedings.
In addition to reporting unauthorized use, franchisees must also inform Cinnaholic immediately if they learn of any infringement or challenge to their use of the Cinnaholic mark. Cinnaholic will then take the action it deems appropriate. This includes the exclusive right to control any litigation, USPTO proceeding, or other proceeding arising out of any infringement, challenge, or claim relating to the mark. These stipulations are typical in franchise agreements, as franchisors need to maintain brand consistency and protect their trademarks, which are vital assets.