Who has the right to control administrative proceedings or litigation involving a trademark licensed by Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We have the right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
Source: Item 13 — TRADEMARKS (FDD pages 31–32)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies retains the right to control any administrative proceedings or litigation involving a trademark that they license to their franchisees. This means that if there is a dispute or legal action concerning the use of the Crave Cookies trademark by a franchisee, Crave Cookies, not the franchisee, will direct the legal strategy and make decisions regarding the proceedings.
This control is significant for prospective franchisees because it means they will not have autonomy over legal matters related to the Crave Cookies trademark. While franchisees are obligated to notify Crave Cookies of any potential trademark issues, the franchisor ultimately decides how to respond and manage the situation. This arrangement centralizes trademark protection with Crave Cookies, which is typical in franchising to maintain brand consistency and control.
However, the FDD also states that the franchise agreement does not require Crave Cookies to take affirmative action when notified of uses or claims of trademark infringement. While Crave Cookies has the right to control proceedings, they are not obligated to act. This could present a risk to franchisees if Crave Cookies chooses not to pursue a potential infringement, which could impact the franchisee's business. Franchisees are also responsible for the expense of modifying or discontinuing the use of a trademark if required by Crave Cookies.