What is the required method of notification to the Coffee News 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, franchisees must immediately inform the franchisor of any apparent violations or challenges to the use of the "Coffee News" name, format, or the franchised business within their designated region. This immediate notification ensures that Coffee News can promptly address any potential infringements to protect its brand and operational methods.
The FDD stipulates that franchisees are prohibited from communicating with anyone other than the franchisor, 2703203 Manitoba Inc., and its counsel regarding any such infringement, challenge, or claim. This restriction ensures that all communications are centralized and managed by the appropriate parties, maintaining consistency and control over the franchisor's legal strategy.
Coffee News retains sole discretion to take any action it deems appropriate and has the exclusive right to control any litigation or administrative claim related to such infringements. This control allows Coffee News to manage legal matters in a way that best protects the brand's interests and ensures uniformity in legal proceedings. Any monetary benefits arising from such legal actions accrue to 2703203 Manitoba Inc., reinforcing the franchisor's ownership and control over the brand's legal assets.
Furthermore, 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 the franchisor and its franchisees. This requirement ensures that the franchisee actively supports the franchisor's legal efforts, contributing to the overall protection and maintenance of the Coffee News brand and business format.