Does Crave Cookies know of any copyright infringement that could materially affect a franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Crave Cookies Franchising shall defend Franchisee (at Crave Cookies Franchising's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Crave Cookies Franchising will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (b) Infringement by Third Party. Franchisee shall promptly notify Crave Cookies Franchising if Franchisee becomes aware of any possible infringement of a Mark by a third party. Crave Cookies Franchising may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control. Crave Cookies Franchising shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 32–33)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Crave Cookies franchise agreement addresses the issue of trademark infringement in section 12.3. Specifically, if a franchisee uses the trademarks in accordance with the franchise agreement, Crave Cookies will defend the franchisee against any third-party action alleging infringement. Crave Cookies will also cover expenses and damages if the action is resolved unfavorably to the franchisee. This indicates that Crave Cookies acknowledges the potential risk of trademark infringement and provides a degree of protection for its franchisees.
Furthermore, the franchise agreement stipulates that franchisees must promptly notify Crave Cookies if they become aware of any possible infringement of a mark by a third party. Crave Cookies retains the exclusive right to control any legal action related to potential infringement of the marks. This clause emphasizes the franchisee's responsibility to report any potential infringement and clarifies that Crave Cookies will manage the legal process.
These provisions suggest that Crave Cookies has a system in place to address trademark infringement issues. However, the FDD excerpt does not explicitly state whether Crave Cookies is currently aware of any specific copyright infringements that could materially affect a franchisee. A prospective franchisee should seek clarification from Crave Cookies regarding any known or potential copyright infringement issues and the potential impact on their business.