What must a Clear Pest Pros franchisee do to protect and maintain the franchisor's interests in any litigation?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
You promise to sign any and all instruments and documents, render the assistance, and do the acts and things that, in the opinion of our attorneys, may be necessary or advisable to protect and maintain our interests in any litigation or USPTO or other proceeding, or otherwise to protect and maintain our interest in the Marks, including, without limitation, becoming a nominal party to any legal action.
Except to the extent that such litigation is the result of your use of the Marks in a manner inconsistent with the terms of the Franchise Agreement, we agree to reimburse you for your out-of-pocket costs in performing such acts.
Source: Item 13 — TRADEMARKS (FDD pages 53–55)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, franchisees have specific obligations to protect the franchisor's interests in any litigation or proceedings related to the trademarks. Franchisees must sign all necessary documents, provide assistance, and perform actions deemed necessary by Clear Pest Pros's attorneys. This includes potentially becoming a nominal party to legal actions.
This requirement ensures that Clear Pest Pros can effectively defend and maintain its trademarks, which are critical to the brand's identity and the franchise system's success. By cooperating fully, franchisees help to strengthen the franchisor's legal position and protect the value of the trademarks for the entire franchise network. Franchisees are expected to follow the guidance of Clear Pest Pros's legal counsel in these matters.
However, franchisees will be reimbursed for out-of-pocket costs incurred while performing these actions, unless the litigation arises from the franchisee's use of the marks in a manner inconsistent with the Franchise Agreement. This provision balances the franchisee's obligation to assist in protecting the trademarks with some financial protection, provided they are using the trademarks correctly. Franchisees should maintain detailed records of any expenses incurred to ensure proper reimbursement.
In summary, Clear Pest Pros franchisees must actively support the franchisor in protecting its trademarks during litigation by providing documentation, assistance, and acting as a nominal party if required. Franchisees are entitled to reimbursement for associated costs if they have adhered to the Franchise Agreement terms regarding trademark usage.