Is Cinnaholic required to protect or defend its copyrights?
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 is not required to protect or defend its copyrights. However, Cinnaholic states that it intends to do so when it is in the best interests of the Cinnaholic franchise system. Cinnaholic retains the exclusive right to control any copyright litigation and keep all sums obtained in settlements or damages awarded, without any obligation to share them with the franchisee.
While Cinnaholic is not required to participate in a franchisee's defense or indemnify them for damages or expenses if the franchisee is involved in legal proceedings related to Cinnaholic's confidential information or other information in which Cinnaholic claims common law rights and copyright protection, Cinnaholic may choose to reimburse the franchisee for their liability and reasonable costs in defending Cinnaholic's confidential information and other information in which Cinnaholic claims common law rights and copyright protection.
This means that while Cinnaholic owns the rights to its trademarks and other intellectual property, it is not obligated to take legal action against infringers. However, Cinnaholic retains control over any copyright litigation and is entitled to all financial benefits from such actions. This arrangement is typical in franchising, where the franchisor owns the intellectual property and decides how best to protect it for the benefit of the entire system. The franchisee is responsible for notifying Cinnaholic of any potential infringements or challenges to Cinnaholic's intellectual property rights.