What is the Coffee News franchisee's obligation regarding notifying the franchisor of infringements to the Coffee News licensed business?
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 a responsibility to immediately inform the franchisor of any potential infringements or challenges to the use of the "Coffee News" name or format within their designated geographic area. This obligation ensures that Coffee News can protect its trademarks and brand identity effectively.
The franchisee is explicitly prohibited from communicating with anyone other than Coffee News, 2703203, Manitoba, Inc., and its counsel regarding any such infringement or challenge. This restriction centralizes the handling of infringement issues with the franchisor and its legal team, ensuring a coordinated and strategic response. Coffee News retains sole discretion in deciding what action to take and has the exclusive right to control any litigation or administrative claims related to the infringement.
Any monetary benefits, damages, or other advantages resulting from actions against infringements or challenges will accrue to 2703203, Manitoba, Inc. Franchisees are required to execute all necessary documents, provide assistance, and perform actions to protect and maintain the interests of Coffee News and its publishers in any litigation or administrative proceeding, as directed by counsel. This underscores the franchisee's role in supporting Coffee News's efforts to safeguard its intellectual property.
This requirement is typical in franchising, as franchisors need to protect their brand and trademarks. By promptly reporting any potential infringements, Coffee News franchisees contribute to the overall strength and integrity of the Coffee News brand, which benefits all franchisees in the long run.