Who has the right to commence a claim against a party infringing on a Crown Gold Exchange mark?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Infringement by Third Party. Franchisee shall promptly notify Crown Gold Franchising if Franchisee becomes aware of any possible infringement of a Mark by a third party. Crown Gold Franchising may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control. Crown Gold Franchising shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Crown Gold Franchising retains the right to initiate a claim against any party that infringes on a Crown Gold Exchange mark. While franchisees are obligated to promptly inform Crown Gold Franchising of any potential infringement, the decision to pursue legal action rests solely with Crown Gold Franchising.
This means that as a Crown Gold Exchange franchisee, you are responsible for reporting any suspected trademark infringement to the franchisor. However, you do not have the authority to independently pursue legal action against the infringing party. Crown Gold Franchising maintains exclusive control over the prosecution or defense of any actions related to potential trademark infringement.
This arrangement protects the brand's trademarks and ensures consistent legal strategy. It also relieves the franchisee of the financial and legal burdens associated with pursuing infringement claims. However, it also means that the franchisee must rely on Crown Gold Franchising to take appropriate action to protect the brand's trademarks in their territory. Prospective franchisees should confirm that Crown Gold Exchange has a history of actively defending its trademarks.