What is the deadline for a Coffee News franchisee to notify the franchisor of adverse legal actions?
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 must immediately notify the franchisor of any apparent infringements or challenges to the use of the "Coffee News" name or format, or the franchisee's franchised business in their region. This immediate notification requirement ensures that Coffee News can promptly address any potential legal issues that could affect the brand or its franchisees.
This obligation extends beyond just reporting the issue. The franchisee is also prohibited from communicating with anyone other than Coffee News, 2703203 Manitoba Inc., and its counsel regarding the infringement, challenge, or claim. This restriction centralizes the handling of legal matters with the franchisor, allowing for consistent and strategic responses. Coffee News retains sole discretion to take action and exclusively controls any litigation or administrative claims related to such infringements or challenges.
Furthermore, any monetary benefits, damages, or other advantages resulting from such legal actions accrue to 2703203 Manitoba Inc., reinforcing the franchisor's control and benefit from protecting the brand. The franchisee is also obligated to execute documents, provide assistance, and perform acts deemed necessary by the counsel of 2703203 Manitoba Inc. to protect the interests of the franchisor, its franchisees, and the Coffee News name and format. This comprehensive approach ensures that Coffee News can effectively manage and safeguard its brand and business interests.