Who has the right to initiate litigation relating to the Cinnaholic mark?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchising, LLC maintains the right to initiate, direct, and control any litigation or administrative proceedings related to its trademarks. This includes the right to settle any such litigation. Cinnaholic also retains any proceeds, damages, attorney's fees, or other sums recovered from these actions.
As a Cinnaholic franchisee, you are obligated to notify Cinnaholic immediately if you become aware of any unauthorized use of the Cinnaholic mark or any challenges to Cinnaholic's ownership or right to license the mark. You must also assist Cinnaholic by executing documents or providing other necessary assistance for any proceedings related to maintaining the validity and enforceability of the mark. While Cinnaholic has the right to control litigation, they are not obligated to initiate it.
Cinnaholic will defend you against third-party claims arising from your use of the mark, provided that you have used the mark in accordance with the Franchise Agreement. If Cinnaholic determines that you have not used the mark correctly, you will be responsible for the costs of your defense. In any litigation related to your use of the mark, you must take actions necessary to support the defense or prosecution, potentially including becoming a nominal party to the legal action. Cinnaholic will reimburse your out-of-pocket costs for these actions unless the litigation results from your inconsistent use of the mark.
This arrangement is typical in franchising, as the franchisor needs to protect its brand and trademarks. The franchisee's role is to report any potential infringements and to use the trademarks correctly, while the franchisor takes the lead in legal matters.