Who has the right to control legal proceedings involving a Crave Cookies trademark licensed to a franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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 licensed to a franchisee. While franchisees are obligated to notify Crave Cookies of any potential trademark infringements or similar claims, Crave Cookies is not required to take any action upon receiving such notification.
This means that if a situation arises where the Crave Cookies trademark is being infringed upon, or if there are legal challenges related to the trademark, Crave Cookies has the authority to decide how to proceed. The franchisee is responsible for informing Crave Cookies of any potential issues, but the ultimate decision-making power rests with the franchisor.
This arrangement is fairly typical in franchising, as the franchisor owns the trademarks and needs to protect them consistently across all franchise locations. It's important for prospective franchisees to understand that while they have the right to use the trademark, Crave Cookies maintains control over its legal defense and management. Franchisees may also be required to modify or discontinue using a trademark at their own expense, should Crave Cookies deem it necessary.