What is the Coffee News franchisee's notification obligation to the franchisor regarding legal actions?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.11 Notification of Violations.
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 Coffee News of any apparent infringements or challenges to the use of the "Coffee News" name or format, or to the franchisee's franchised business within their region. The franchisee is restricted from communicating with anyone other than Coffee News, 2703203 Manitoba Inc., and their counsel regarding such infringements, challenges, or claims.
Coffee News maintains sole discretion to take action it deems appropriate and has the exclusive right to control any litigation or administrative claim related to such infringements, challenges, or claims. Any money, damages, or other benefits resulting from such actions accrue to 2703203 Manitoba Inc., not the franchisee.
The franchisee is obligated to execute any documents, provide assistance, and perform any acts deemed necessary by the counsel of 2703203 Manitoba Inc. to protect the interests of 2703203 Manitoba Inc., Coffee News, and its franchisees in any litigation or administrative proceeding. This ensures that Coffee News maintains control over its brand and legal strategy, while the franchisee is required to support these efforts.