With whom can a Closet Storage Concepts franchisee communicate regarding an infringement challenge?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of any infringement of, or challenge to, your use of any of the Proprietary Marks, you must immediately notify us, and we will have sole discretion to take such action as deemed appropriate. You must not communicate with any person other than your legal counsel, us and our legal representative in connection with any infringement challenge or claim. We will indemnify and hold you harmless from any suits, proceedings, demands, obligations, actions or claims, including costs and reasonable attorneys' fees, for any alleged infringement under federal or state trademark law arising solely from your conforming use of the Proprietary Marks in accordance with the Franchise Agreement or as otherwise set forth by us in writing, if you have notified us promptly of the claim. We reserve the right, under the Franchise Agreement, to substitute add or change the Proprietary Marks for use in identifying the System and the businesses operating under the System if the current Proprietary Marks no longer can be used, or if we, in our sole discretion, determine that a change in Proprietary Marks will be beneficial to the System. If we change any of the Proprietary Marks, you must bear the cost and expense of all changes at your Approved Location (for example, changing signage, business cards, etc.).
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, if a franchisee faces an infringement or challenge related to the Proprietary Marks, they must immediately inform Closet Storage Concepts. The franchisee's ability to communicate about the matter is restricted to their own legal counsel, Closet Storage Concepts, and Closet Storage Concepts's legal representatives. This ensures that Closet Storage Concepts maintains control over the legal strategy and messaging related to its trademarks.
This communication protocol is fairly standard in franchising, as franchisors typically want to control the defense of their trademarks to ensure consistent legal positions and to protect the brand's reputation. By limiting communication to specific parties, Closet Storage Concepts aims to prevent franchisees from making statements or taking actions that could harm the franchisor's legal position.
Closet Storage Concepts also agrees to indemnify and hold the franchisee harmless from any legal actions arising from the franchisee's authorized use of the Proprietary Marks, provided the franchisee promptly notifies Closet Storage Concepts of the claim. However, the franchisee is responsible for the costs of updating their location's signage, business cards, and other materials if Closet Storage Concepts decides to change the Proprietary Marks.