What must a Closet Storage Concepts franchisee do in the event of any infringement of the Proprietary Marks?
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' 2025 Franchise Disclosure Document, a franchisee must immediately notify Closet Storage Concepts in the event of any infringement of, or challenge to, their use of any of the Proprietary Marks. The franchisee is also restricted from communicating with anyone other than their legal counsel, Closet Storage Concepts, and Closet Storage Concepts' legal representative regarding the infringement, challenge, or claim. Closet Storage Concepts retains sole discretion to take action as it deems appropriate.
Closet Storage Concepts will indemnify and hold the franchisee 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. This protection applies only if the infringement arises solely from the franchisee's conforming use of the Proprietary Marks in accordance with the Franchise Agreement or as otherwise set forth by Closet Storage Concepts in writing, and if the franchisee has promptly notified Closet Storage Concepts of the claim.
Closet Storage Concepts reserves the right 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 can no longer be used, or if Closet Storage Concepts, in its sole discretion, determines that a change in Proprietary Marks will be beneficial to the System. If Closet Storage Concepts changes any of the Proprietary Marks, the franchisee must bear the cost and expense of all changes at their Approved Location, such as changing signage and business cards.