What other actions must a Coffee News franchisee take to assist with infringement claims?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately notify Franchisor of any apparent infringements of or challenges to the use of the "Coffee News" name or Format or Franchisee's Franchised business in the region covered by this Agreement.
Franchisee shall not communicate with any person other than Franchisor, 2703203 Manitoba Inc., and its counsel in connection with any such infringement, challenge or claim.
Franchisee agrees that 2703203 Manitoba Inc. shall have sole discretion to take such action as it deems appropriate and the right to exclusively control any litigation or other administrative claim or action relating to any such infringement, challenge or claim.
Any money, damages or other benefits arising out of such infringement, challenge or claim shall accrue to 2703203 Manitoba Inc.
Franchisee agrees to execute any and all instruments and documents, render such
assistance and perform such acts as may, in the opinion of the counsel of 2703203 Manitoba Inc., be necessary or advisable, to protect and maintain the interests of 2703203 Manitoba Inc., Franchisor and its franchisees in any litigation or administrative proceeding or to otherwise protect and maintain the interest of 2703203 Manitoba Inc. and Franchisor in the "Coffee News" name and Format or their businesses.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a franchisee has specific obligations regarding potential infringements or challenges to the Coffee News name, format, or their franchised business.
First, the franchisee must immediately inform Coffee News of any apparent infringements or challenges in their region. Critically, the franchisee is prohibited from communicating with anyone other than Coffee News, 2703203 Manitoba Inc., and its counsel regarding any infringement, challenge, or claim. This ensures that all communications are managed centrally by the appropriate legal representatives.
Furthermore, Coffee News retains sole discretion to take action it deems appropriate and has the exclusive right to control any litigation or administrative action related to an infringement, challenge, or claim. The franchisee must execute all necessary documents, provide assistance, and perform any acts that Coffee News's counsel considers necessary to protect the interests of Coffee News, 2703203 Manitoba Inc., and its franchisees. Any financial benefits from such actions accrue to 2703203 Manitoba Inc. This clause emphasizes the franchisee's role in supporting Coffee News's legal efforts while relinquishing control over the legal process itself.