To whom do any benefits arising from infringement claims against Coffee News accrue?
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
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, any money, damages, or other benefits resulting from infringement claims against the Coffee News name or format accrue to 2703203 Manitoba Inc. As a franchisee, you are required to immediately notify Coffee News of any apparent infringements or challenges to the use of the "Coffee News" name or format in your franchised business region.
This means that while franchisees are responsible for reporting any potential infringements, they do not directly benefit financially from any legal actions taken to protect the brand. The franchisor, through 2703203 Manitoba Inc., retains the sole discretion to decide on the appropriate course of action regarding infringements and exclusively controls any related litigation.
Furthermore, as a Coffee News franchisee, you must assist 2703203 Manitoba Inc. by executing documents and providing necessary assistance to protect the interests of the company, the franchisor, and its franchisees. This ensures that the Coffee News brand and its associated intellectual property are vigorously defended, even though the direct financial benefits go to 2703203 Manitoba Inc.