What is the Coffee News franchisee required to do to maintain the franchisor's interests in any litigation or administrative proceeding?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you shall immediately notify us of any apparent infringements of or challenges to the use of the "Coffee News" name or format or your licensed business in the geographic area covered by the agreement. You shall not communicate with any person other than us, 2703203, Manitoba, Inc. and its counsel in connection with any such infringement or challenge. You will agree that 2703203, Manitoba, Inc. shall have sole discretion to take the action it deems appropriate and the right to exclusively control any litigation or other administrative claim or action relating to the infringement, challenge, or claim. Any money, damages, or other benefits arising from the infringement or challenge shall benefit 2703203, Manitoba, Inc. You must execute all instruments and documents, give all assistance and perform those acts to protect and maintain our interests as required by counsel of 2703203, Manitoba, Inc., us and its publishers in any litigation or administrative proceeding.
Source: Item 13 — Trademarks (FDD pages 22–24)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees have specific obligations to protect the franchisor's interests in legal matters. If there are infringements or challenges to the use of the "Coffee News" name or format within the franchisee's territory, the franchisee must immediately inform Coffee News and 2703203, Manitoba, Inc. The franchisee is explicitly prohibited from communicating with anyone else about the issue, except for Coffee News, 2703203, Manitoba, Inc., and their counsel. This ensures that all communications are controlled and directed by the appropriate parties.
Coffee News and 2703203, Manitoba, Inc. retain sole discretion over any legal action taken, including litigation or administrative claims. The franchisee must comply with the directions of counsel for 2703203, Manitoba, Inc., Coffee News, and its publishers. This includes executing documents, providing assistance, and performing any actions necessary to protect and maintain their interests. Any financial benefits, such as money or damages, resulting from such legal actions will accrue to 2703203, Manitoba, Inc.
In essence, the franchisee's role is to act as an early warning system for potential trademark issues and to fully cooperate with Coffee News and its legal representatives in any resulting legal proceedings. This division of responsibility is typical in franchising, where the franchisor takes the lead in protecting the brand's intellectual property, while the franchisee supports those efforts within their local market. Franchisees should be aware that they must follow the franchisor's instructions and cannot independently pursue legal action related to trademark infringements.