What is a Cool Binz franchisee required to do to assist in protecting the Marks in litigation or USPTO proceedings?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or of any claim by any person of any rights in any Mark, and not to communicate with any person other than us and our attorneys, and your attorneys, in any infringement, challenge, or claim. We have sole discretion to take the action we deem appropriate and the right to control exclusively any litigation, U.S. Patent and Trademark Office ("USPTO") proceeding, or any other administrative proceeding arising out of any infringement, challenge, claim or otherwise relating to any Mark. Provided that you have timely notified us of the claim or proceeding and complied with this Agreement as we determine in our sole discretion, we shall indemnify and hold you harmless against reasonable litigation expenses incurred in connection with any such infringement, challenge or claim. If we, in our sole discretion, determine that you have not used the Marks in accordance with this Agreement, you will bear the cost of such defense, including the cost of any
judgment or settlement. You must sign any and all instruments and documents, render the assistance, and do the acts and things that, in the opinion of our attorneys, may be necessary or advisable to protect and maintain our interests in any litigation or USPTO or other proceeding, or otherwise to protect and maintain our interest in the Marks, including, without limitation, becoming a nominal party to any legal action. Except to the extent that such litigation is the result of your use of the Marks in a manner inconsistent with the terms of this Agreement, we agree to reimburse you for your out-of-pocket costs in performing such acts.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the protection of the company's Marks. If a franchisee notices any infringement or challenge to the use of a Mark, or any claim by another party, they must immediately notify Cool Binz. The franchisee is not allowed to communicate with anyone other than Cool Binz, their attorneys, and the franchisee's attorneys regarding the issue. Cool Binz has the sole discretion to decide what action to take and has the exclusive right to control any litigation, USPTO (U.S. Patent and Trademark Office) proceeding, or other administrative proceeding related to the Marks.
If the franchisee promptly notifies Cool Binz of the claim or proceeding and complies with the franchise agreement, Cool Binz will cover reasonable litigation expenses. However, if Cool Binz determines that the franchisee did not use the Marks according to the agreement, the franchisee will be responsible for the defense costs, including any judgment or settlement costs.
The franchisee is required to sign documents and provide assistance as deemed necessary by Cool Binz's attorneys to protect the company's interests in any litigation, USPTO, or other proceeding. This includes potentially becoming a nominal party in a legal action. Cool Binz will reimburse the franchisee for out-of-pocket costs incurred while performing these actions, unless the litigation results from the franchisee's inconsistent use of the Marks with the franchise agreement.