Who reserves the right to control any litigation related to the Craters & Freighters 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.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters reserves the right to control any litigation related to its Marks. This means that if there are any legal disputes involving the Craters & Freighters trademarks, the company has the authority to manage and direct the legal proceedings.
This provision in the Franchise Agreement is important for prospective franchisees because it clarifies who has the ultimate say in trademark-related litigation. While franchisees are required to notify Craters & Freighters of any challenges to the Marks and Craters & Freighters is obligated to take action, the franchisor retains control over the legal strategy and decisions. This is a common practice in franchising, as the franchisor has a vested interest in protecting its brand and trademarks.
For a Craters & Freighters franchisee, this means they can rely on the franchisor's expertise and resources in handling trademark litigation. However, it also means they may not have direct control over the legal strategy or settlement decisions. Franchisees are still obligated to notify Craters & Freighters of any potential trademark issues and cooperate with the franchisor in defending the Marks. Craters & Freighters will defend the Marks at its expense and as it determines.
It is important for prospective franchisees to understand this provision and how it may impact their business. While Craters & Freighters is responsible for defending the Marks, franchisees should still take steps to protect their own interests and comply with the franchisor's trademark usage guidelines. Franchisees must modify or discontinue the use of a Mark if Craters & Freighters modifies or discontinues the use of such Mark, and Craters & Freighters will reimburse the franchisee for tangible out-of-pocket cost of compliance. Additionally, franchisees must not directly or indirectly contest Craters & Freighters' right to the Marks, trade secrets, or business techniques.