Who has the right to control litigation or USPTO proceedings caused by infringement of the Crave marks?
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, Crave retains the exclusive right to control any litigation, USPTO, or other administrative proceedings related to infringement, challenges, or claims involving Crave's marks. This means that if there is an infringement issue, Crave, not the franchisee, will direct the legal strategy and proceedings.
As a Crave franchisee, you are required to immediately notify Crave of any apparent infringement of the marks, challenges to your use of the marks, or claims by any person of rights in the marks. Furthermore, franchisees and their principals are not allowed to communicate with anyone other than Crave, its designated affiliates, or their respective counsel regarding any infringement, challenge, or claim. Franchisees must also sign any documents and take actions deemed necessary by Crave's counsel to protect Crave's interests in any litigation or USPTO proceeding.
This arrangement is typical in franchising, as the franchisor needs to protect the brand's trademarks consistently across all locations. While Crave controls the legal proceedings, they also offer some protection to the franchisee. Crave will indemnify and reimburse franchisees for damages they are held liable for due to their use of Crave's marks, provided that the franchisee's conduct and use of the marks comply with the Franchise Agreement. This protection is conditional, emphasizing the importance of adhering to the terms of the Franchise Agreement when using Crave's trademarks.