Who has the right to control litigation arising out of infringement of the Cinnaholic mark?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately when you learn about an infringement of or challenge to your use of a Mark. We will take the 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. If we, in our sole discretion, determine that you have used the Mark in accordance with the Franchise Agreement, the cost of such defense and the cost of any judgment or settlement, will be borne by us. If we, in our sole discretion, determine that you have not used the Mark in accordance with the Franchise Agreement, those costs will be borne by you. In the event of any litigation relating to your use of the Mark, you will do such acts as may, in our opinion, be necessary to carry out such defense or prosecution, including becoming a nominal party to any legal action. Except to the extent that such litigation is the result of your use of the Mark in a manner inconsistent with the terms of the Franchise Agreement or the Manuals, we agree to reimburse you for your out-of-pocket costs in doing such acts.
Source: Item 13 — TRADEMARKS (FDD pages 37–39)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic retains the exclusive right to control any litigation, USPTO proceeding, or other proceeding arising out of any infringement, challenge, or claim relating to its Marks. This means that Cinnaholic, not the franchisee, decides how to respond to any infringement or challenge to the Cinnaholic trademark.
This control extends to initiating, directing, and controlling any litigation or administrative proceeding related to the Cinnaholic Mark, including settlements. Cinnaholic is entitled to retain all proceeds, damages, and other sums, including attorneys' fees, recovered in connection with any such action. The franchisee is obligated to execute all documents and provide assistance that Cinnaholic deems necessary for any proceeding or effort to maintain the validity and enforceability of the Mark.
Cinnaholic will defend the franchisee against third-party claims arising from the franchisee's use of the Mark, provided the franchisee has used the Mark in accordance with the Franchise Agreement and Operations Manual. If Cinnaholic determines the franchisee's use of the Mark was not in accordance with the Franchise Agreement, the franchisee will bear the costs of the defense and any resulting judgment or settlement. In any litigation related to the franchisee's use of the Mark, the franchisee must perform acts necessary to carry out the defense or prosecution, potentially becoming a nominal party to any legal action. Cinnaholic will reimburse the franchisee's out-of-pocket costs for such acts, unless the litigation results from the franchisee's inconsistent use of the Mark.
In summary, Cinnaholic maintains control over its trademarks and any related legal actions, which is a common practice in franchising to protect brand consistency and value. Franchisees are required to cooperate in these efforts, and Cinnaholic provides a defense against claims arising from authorized use of the Mark.