What is a Crisp & Green franchisee required to do if there is a challenge to their use of any Mark by any person?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
modified or substitute trademark or service mark.
You must notify us immediately of any actual or apparent infringement of or challenge to your use of any Mark or of any person's claim of any rights in any Mark (or any identical or confusingly similar trademark) or claim of unfair competition relating to any Mark. You may not communicate with any person other than us and our Parent, our and its attorneys, and your attorneys, regarding any infringement, challenge or claim. We and our Parent may take the action that we or our Parent deems appropriate (including no action) and control exclusively any litigation, USPTO proceeding or other administrative proceeding arising from any infringement, challenge or claim or otherwise concerning any Mark. You must sign any documents and take any other reasonable actions that, in our or our Parent's attorneys' opinion, are necessary or advisable to protect and maintain our and our Parent's interests in any litigation or USPTO or other proceeding or otherwise to protect and maintain our and our Parent's interests in the Marks.
We need not protect your right to use the Marks nor protect you against claims of infringement or unfair competition arising from your use of the Marks. We will indemnify you against costs, expenses, and damages for which you are held liable in a proceeding arising out of your use of the Marks only if (i) your use of the Marks that is the subject of the proceeding was authorized and in accordance with the terms of
the Franchise Agreement, (ii) you timely notified us of the claim against you, and (iii) you and your owners and affiliates are in compliance with all agreements with us.
ITEM 14 PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION
There are not currently any registered patents or copyrights that are material to the franchise, nor are there any pending applications for any such patents or copyrights, and you do not receive the right to use any registered patents or copyrights. However, we do claim copyright ownership and protection for various elements of our Marks and for our Operations Manual, website, training materials, and other materials.
There are currently no effective material determinations of the United States Patent and Trademark Office, the United States Copyright Office, or any other similar regulatory body or court, relating to any patent or copyright of ours, or to any application of ours for any patent or copyright.
Source: Item 13 — TRADEMARKS (FDD pages 47–49)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee must immediately notify Crisp & Green of any actual or apparent infringement or challenge to their use of any Mark. This also applies to any person's claim of rights in any Mark, or any identical or confusingly similar trademark, or any claim of unfair competition relating to any Mark. The franchisee is restricted from communicating with anyone other than Crisp & Green, its parent company, their attorneys, and the franchisee's own attorneys regarding any such infringement, challenge, or claim.
Crisp & Green, along with its parent company, has the exclusive right to decide what action to take, including taking no action at all. They also control any litigation, USPTO proceeding, or other administrative proceeding arising from any infringement, challenge, or claim concerning any Mark. The franchisee is obligated to sign any documents and take any reasonable actions deemed necessary by Crisp & Green's or its parent's attorneys to protect and maintain their interests in any litigation, USPTO, or other proceeding, or to protect and maintain their interests in the Marks.
It is important to note that Crisp & Green is not obligated to protect the franchisee's right to use the Marks or to protect them against claims of infringement or unfair competition arising from their use of the Marks. However, Crisp & Green will indemnify the franchisee against costs, expenses, and damages for which the franchisee is held liable in a proceeding arising out of their use of the Marks, but only if the franchisee's use was authorized and in accordance with the Franchise Agreement, the franchisee timely notified Crisp & Green of the claim, and the franchisee, its owners, and affiliates are in compliance with all agreements with Crisp & Green. This means that franchisees must adhere strictly to the brand standards and operational guidelines to ensure they are covered by this indemnification.
Furthermore, the FDD states that if Crisp & Green believes it is advisable to modify, discontinue, or replace any Mark, the franchisee must comply with these directions within a reasonable time after receiving notice. Crisp & Green is not required to reimburse the franchisee for any expenses incurred in complying with these directions, such as costs for changing signs or replacing supplies, any loss of revenue due to a modified or discontinued Mark, or the expenses of promoting a modified or substitute trademark or service mark. This could potentially create unexpected costs for the franchisee.