What is a Craters & Freighters franchisee required to do if they become aware of any challenges to the Marks?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We will protect your right to use the Marks. You must notify us of any challenges to the Marks. Your Franchise Agreement requires us to take affirmative action when notified of any challenges or any trademark that is similar or confusing to the public. We will defend the Marks at our expense and as we determine. We reserve the right to control any litigation related to the Marks.
You must modify or discontinue the use of a Mark if we modify or discontinue the use of such Mark. If this happens, we will reimburse you for your tangible out-of-pocket cost of compliance (for example, changing letterhead and business cards). You must not directly or indirectly contest our right to the Marks, trade secrets or business techniques.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees play a crucial role in protecting the brand's trademarks. If a franchisee becomes aware of any challenges to the Marks, they are obligated to notify Craters & Freighters. This notification is a requirement outlined in the Franchise Agreement, ensuring that Craters & Freighters is promptly informed of any potential infringement or challenges to their trademarks.
Upon receiving such notification, Craters & Freighters is required to take affirmative action regarding the challenge or any trademark that is similar or confusing to the public. Craters & Freighters retains the right to defend the Marks at their own expense and as they determine necessary, including controlling any related litigation. This indicates that Craters & Freighters takes responsibility for the legal defense of its trademarks, relieving the franchisee of this burden.
Furthermore, franchisees must adhere to any modifications or discontinuation of a Mark as directed by Craters & Freighters. Should this occur, Craters & Freighters will reimburse the franchisee for tangible out-of-pocket costs incurred in complying with the changes, such as updating letterhead and business cards. Franchisees are also prohibited from contesting Craters & Freighters' rights to the Marks, trade secrets, or business techniques, reinforcing the franchisor's control and ownership of its intellectual property.