Under what condition will Crave Cookies Franchising defend a franchisee against a third-party action alleging trademark infringement?

According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising will defend a franchisee against a third-party action alleging trademark infringement only if the franchisee has used the Marks in accordance with the franchise agreement. This means the franchisee must adhere to all guidelines and requirements set forth by Crave Cookies Franchising regarding the use of their trademarks, service marks, and logos.

Specifically, the franchisee must only use the marks authorized by Crave Cookies Franchising and in the manner that Crave Cookies Franchising requires. The franchisee has no rights in the marks other than the right to use them in the operation of the business in compliance with the agreement. All use of the marks by the franchisee and any goodwill associated with the marks will benefit Crave Cookies Franchising exclusively.

If a franchisee uses the marks correctly and still faces an infringement claim, Crave Cookies Franchising will cover the expenses of defending the franchisee and will also cover damages if the action is resolved unfavorably to the franchisee. This protection is a significant benefit for franchisees, as trademark litigation can be costly. However, it is crucial for franchisees to strictly adhere to Crave Cookies Franchising's guidelines for using the marks to ensure they are covered in case of an infringement claim.