What is a Cool Binz franchisee required to do if they notice an infringement of the Cool Binz trademark?
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.
Provided that you have timely notified us of the claim or proceeding and complied with the Franchise Agreement as we determine in our sole discretion, we shall indemnify and hold you harmless against any loss or expense 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 the Franchise 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 the Franchise Agreement, we agree to reimburse you for your out-of-pocket costs in performing such acts.
Source: Item 13 — TRADEMARKS (FDD pages 49–50)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the company's trademarks. If a franchisee observes any potential infringement or challenges to the use of the Cool Binz trademark, they must immediately notify Cool Binz.
Furthermore, the franchisee is prohibited from communicating with any party regarding the infringement, challenge, or claim, except for their own attorneys and the attorneys representing Cool Binz. This requirement ensures that Cool Binz maintains control over the legal strategy and response to any trademark issues.
Cool Binz also outlines the conditions under which it will provide support to franchisees in the event of an infringement claim. If the franchisee promptly notifies Cool Binz of the claim or proceeding and complies with the Franchise Agreement, Cool Binz will indemnify and hold the franchisee harmless against any losses or expenses incurred. However, if Cool Binz determines that the franchisee has not used the trademarks in accordance with the Franchise Agreement, the franchisee will be responsible for the costs of defending against the claim, including any judgments or settlements. Franchisees must also sign documents and provide assistance as deemed necessary by Cool Binz's attorneys to protect the company's interests in any legal or administrative proceedings related to the trademarks.