At whose expense will Craters & Freighters defend 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's 2025 Franchise Disclosure Document, Craters & Freighters will defend the Marks at their own expense. The Franchise Agreement requires Craters & Freighters to take action when notified of challenges to trademarks similar or confusing to the public. Craters & Freighters also reserves the right to control any litigation related to the Marks.
This means that if another company or individual infringes on Craters & Freighters' trademarks, Craters & Freighters is responsible for covering the legal costs associated with defending those trademarks. This is a significant benefit for franchisees, as they do not have to worry about personally funding legal battles to protect the brand's intellectual property. It is common in franchising for the franchisor to take responsibility for defending the trademarks, as they own the rights to the brand and its associated intellectual property.
However, the FDD also states that franchisees must notify Craters & Freighters of any challenges to the Marks. This places a responsibility on the franchisee to be vigilant and proactive in identifying potential infringements. Additionally, Craters & Freighters retains the right to control any litigation related to the Marks, meaning they have the final say in how the defense is handled. Franchisees must also 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 costs of compliance, such as changing letterhead and business cards.