Who is responsible for defending the Craters & Freighters Marks if challenged?
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's 2025 Franchise Disclosure Document, Craters & Freighters is responsible for protecting a franchisee's right to use the Marks. The franchisee must notify Craters & Freighters of any challenges to the Marks. The Franchise Agreement requires Craters & Freighters to take affirmative action when notified of any challenges or any trademark that is similar or confusing to the public. Craters & Freighters will defend the Marks at its expense and as it determines, and reserves the right to control any litigation related to the Marks.
This means that if another company or individual tries to use a similar trademark or challenges the franchisee's right to use the Craters & Freighters Marks, the franchisee is obligated to inform Craters & Freighters. Then, Craters & Freighters is contractually bound to take action to defend the Marks. This protection is a significant benefit for franchisees, as it relieves them of the financial and legal burden of defending the trademarks themselves.
However, Craters & Freighters retains control over how the defense is conducted. Franchisees must abide by Craters & Freighters's decisions regarding litigation and defense strategies. Additionally, if Craters & Freighters modifies or discontinues the use of a Mark, the franchisee must also modify or discontinue its use. In such cases, Craters & Freighters will reimburse the franchisee for tangible out-of-pocket costs of compliance, such as changing letterhead and business cards. Franchisees are prohibited from contesting Craters & Freighters's rights to the Marks, trade secrets, or business techniques.