Under what conditions will Crave Cookies Franchising defend a franchisee against a third-party action alleging trademark infringement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising will defend a franchisee against a third-party action alleging trademark infringement if the franchisee has used the marks in accordance with the franchise agreement. In such a case, Crave Cookies Franchising will defend the franchisee at its own expense.
Furthermore, if the action is resolved unfavorably to the franchisee, Crave Cookies Franchising will indemnify the franchisee for expenses and damages. This means Crave Cookies will cover the franchisee's costs if they lose the lawsuit, provided the franchisee followed the guidelines for using Crave Cookies's trademarks.
This protection is a significant benefit for franchisees, as trademark infringement lawsuits can be costly. However, it's crucial for franchisees to adhere strictly to the brand's guidelines for using trademarks to be eligible for this defense and indemnification. Franchisees must use the marks as specified by Crave Cookies Franchising and only use authorized marks.