What is a City Wide franchisee required to do if another party attempts to use the Marks?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will promptly notify CITY WIDE of any claim, demand, or cause of action based upon or arising from any attempt by any other person, firm or corporation to use the Marks or any colorable imitation of them.
Franchisee will notify CITY WIDE of any action, claim or demand against Franchisee relating to the Marks, within ten (10) calendar days after Franchisee receives notice of any action, claim, or demand.
Upon receipt of a timely notice of an action, claim or demand against Franchisee relating to the Marks, CITY WIDE will have the sole and absolute right to defend any such action.
CITY WIDE will have the exclusive right to contest or bring action against any third party regarding the third party's use of any of the Marks and will exercise such right at its sole and absolute right.
In any defense or prosecution of any litigation relating to the Marks or components of the System undertaken by CITY WIDE, Franchisee will cooperate with CITY WIDE and execute any documents and take all actions as may be desirable or necessary in the opinion of CITY WIDE's counsel, to conduct such defense or prosecution.
Both parties will make every effort consistent with the foregoing to protect, maintain, and promote the Marks as identifying the System.
CITY WIDE MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE USE, EXCLUSIVE OWNERSHIP, VALIDITY OR ENFORCEABILITY OF THE MARKS.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee becomes aware of another party attempting to use City Wide's Marks or any imitation of them, the franchisee must promptly notify City Wide. This obligation is outlined in the franchise agreement to protect City Wide's brand and trademarks.
Upon receiving notice, City Wide has the sole right to defend against such actions. The franchisee is obligated to cooperate with City Wide in any litigation related to the Marks, including executing necessary documents and taking actions deemed desirable by City Wide's counsel. This ensures a coordinated legal strategy to protect the brand's intellectual property.
The franchise agreement emphasizes that both City Wide and the franchisee must make consistent efforts to protect, maintain, and promote the Marks. However, City Wide makes no guarantees regarding the use, exclusive ownership, validity, or enforceability of the Marks. This highlights the importance of brand protection and the potential legal complexities involved in maintaining trademark rights.
In practical terms, this means a City Wide franchisee must be vigilant in monitoring for potential trademark infringements and act quickly to inform City Wide of any suspected unauthorized use. While the franchisee is responsible for reporting, City Wide assumes the responsibility and cost of legal action, providing a level of protection for the franchisee while ensuring brand consistency and legal control remains with the franchisor.