What actions must a Crave franchisee take if there is an apparent infringement of the Crave trademarks?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us of any apparent infringement of the Marks or challenge to your use of any of the Marks or claim by any person of any rights in any of the Marks. You and your Principals are not permitted to communicate with any person other than us, or any designated affiliate, our counsel and your counsel involving any infringement, challenge, or claim. We can take action and have the right to exclusively control any litigation or USPTO or other administrative or agency proceeding caused by any infringement, challenge or claim or otherwise relating to any of the Marks. You must sign any and all documents, and do what may, in our counsel's opinion, be necessary or advisable to protect our interests in any litigation or USPTO or other administrative or agency proceeding or to otherwise protect and maintain our interests and the interests of any other person or entity (including any affiliate) having an interest in the Marks.
We will indemnify you against and reimburse you for all damages for which you are held liable for your use of any of the Marks, provided that the conduct of you and your Principals in the proceeding and use of the Marks is in full compliance with the terms of the Franchise Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 46–47)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the brand's trademarks. If a franchisee notices what appears to be an infringement of Crave's trademarks, they must immediately notify Crave. The franchisee is not allowed to communicate with anyone else about the infringement, except for Crave, its designated affiliates, their counsel, and the franchisee's own counsel. This restriction ensures that Crave maintains control over how potential infringements are handled.
Crave retains the exclusive right to take action against infringements, including controlling any litigation or proceedings with the U.S. Patent and Trademark Office (USPTO). Franchisees are required to cooperate fully with Crave in these matters. This includes signing any documents and taking any actions deemed necessary by Crave's counsel to protect the brand's interests. This requirement is in place to ensure that Crave can effectively defend its trademarks and maintain brand consistency across all franchise locations.
Crave will protect franchisees against any damages they are held liable for when using the trademarks, as long as the franchisee's conduct and use of the trademarks fully comply with the Franchise Agreement. This indemnification clause offers some financial protection to franchisees, but it is contingent on their adherence to the agreement. This means that franchisees must operate their businesses in accordance with Crave's standards and guidelines to be eligible for this protection. This is a fairly standard practice in franchising, as franchisors typically want to control trademark-related legal matters to ensure consistent brand protection.