If Cordova's right to use the trademarks is challenged, what might a franchisee have to do?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
demark Office ("USPTO"). As to each of these principal trademarks:
We do not have a federal registration for each of these principal trademarks. Therefore, the trademarks identified below do not have many legal benefits and rights that are afforded to federally registered trademarks. If our right to
use the trademarks (identified below) is challenged, you may have to change to an alternative trademark, which may increase your expenses.
| Mark | Serial Number for Registration Application Filed with USPTO Application | Application Type | Application Date |
|---|---|---|---|
| Cordova | 99030953 | 1(a) | February 6, 2025 |
There are no currently effective material determinations of the USPTO, the Trademark Trial and Appeal Board and/or the trademark administrator in any state or any court; no pending infringement, opposition or cancellation proceedings;
Source: Item 13 — TRADEMARKS (FDD pages 30–31)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, if a third party successfully challenges Cordova's right to use certain trademarks that are not federally registered, a franchisee may be required to switch to an alternative trademark. This could lead to increased expenses for the franchisee. These expenses could include the cost of changing signage and marketing materials. However, Cordova states that they will reimburse the franchisee for the direct out-of-pocket costs of complying with this obligation, provided the franchisee documents these costs to Cordova's satisfaction.
Cordova also maintains the right to modify or replace the Licensed Marks if a third party establishes superior rights to the marks. In such a case, franchisees must use the revised marks as directed by Cordova. Cordova's liability in this situation is limited to reimbursing the franchisee for direct out-of-pocket expenses incurred while complying with the required changes, such as alterations to signage and replacement of marketing materials, provided these costs are documented to Cordova's satisfaction.
It is important to note that Cordova states they will protect a franchisee's right to use the Licensed Marks and defend against claims of infringement or unfair competition, provided the franchisee uses the marks in accordance with the Franchise Agreement, manuals, and Cordova's instructions. Cordova will also indemnify the franchisee against direct damages for trademark infringement if the franchisee complies with the Franchise Agreement, manuals, and written instructions, and provides timely notification of any claims, giving Cordova sole control over the defense and settlement. However, Cordova is not obligated to cover attorney fees if the franchisee retains their own attorney when Cordova is already defending the claim.