Is Craters & Freighters required to take affirmative action in response to any apparent infringement of its Copyrighted Works, Confidential Information or Trade Secrets?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us within three days after you learn about another's use of language, a visual image, or a recording of any kind, that you perceive to be identical or substantially similar to one of our Copyrighted Works or use of our Confidential Information or Trade Secrets or if someone challenges your use of our Copyrighted Works, Confidential Information or Trade Secrets. We will take whatever action we deem appropriate, in our sole and absolute discretion, to protect our rights in and to the Copyrighted Works, Confidential Information or Trade Secrets, which may include payment of reasonable costs associated with the action. However, the Franchise Agreement does not require us to take affirmative action in response to any apparent infringement of or challenge to your use of any Copyrighted Works, Confidential Information or Trade Secrets or claim by any person of any rights in any Copyrighted Works, Confidential Information or Trade Secrets. You must not directly or indirectly contest our rights to any of our Copyrighted Works, Confidential Information or Trade Secrets. You may not communicate with anyone except us and our counsel with respect to any infringement, challenge or claim. We will have discretion to take action as we deem appropriate regarding any infringement, challenge or claim, and the sole right to control exclusively any litigation or other proceeding arising out of any infringement, challenge or claim under any Copyrighted Works, Confidential Information or Trade Secrets. You must sign any and all instruments and documents, give the assistance, and do acts and things that may, in the opinion of our counsel, be necessary to protect and maintain our interests in any litigation or proceeding or to protect and maintain our interests in the Copyrighted Works, Confidential Information or Trade Secrets.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters is not required to take affirmative action in response to any apparent infringement of or challenge to a franchisee's use of any Copyrighted Works, Confidential Information, or Trade Secrets. However, franchisees must notify Craters & Freighters within three days after learning about another's use of language, a visual image, or a recording of any kind, that the franchisee perceives to be identical or substantially similar to one of Craters & Freighters's Copyrighted Works or use of their Confidential Information or Trade Secrets. This notification requirement also applies if someone challenges the franchisee's use of Craters & Freighters's Copyrighted Works, Confidential Information, or Trade Secrets.
Craters & Freighters retains the sole and absolute discretion to take whatever action it deems appropriate to protect its rights, which may include payment of reasonable costs associated with the action. Franchisees are prohibited from directly or indirectly contesting Craters & Freighters's rights to any of its Copyrighted Works, Confidential Information, or Trade Secrets. Franchisees are also restricted from communicating with anyone except Craters & Freighters and its counsel regarding any infringement, challenge, or claim.
Craters & Freighters maintains the discretion to take action as it deems appropriate regarding any infringement, challenge, or claim, and it has the sole right to control exclusively any litigation or other proceeding arising out of any infringement, challenge, or claim under any Copyrighted Works, Confidential Information, or Trade Secrets. Franchisees are obligated to sign all necessary documents, provide assistance, and perform any actions deemed necessary by Craters & Freighters's counsel to protect and maintain Craters & Freighters's interests in any litigation or proceeding or to protect and maintain Craters & Freighters's interests in the Copyrighted Works, Confidential Information, and Trade Secrets. This means that while Craters & Freighters is not obligated to act, franchisees must actively support Craters & Freighters in any legal actions it chooses to pursue.