Who has the right to control legal proceedings involving a trademark licensed by Crown Gold Exchange?

According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Crown Gold Exchange retains the right to control any administrative proceedings or litigation involving a trademark that it licenses to its franchisees. This means that if a legal issue arises concerning the use of the Crown Gold Exchange trademark by a franchisee, Crown Gold Exchange, not the franchisee, will direct the legal strategy and proceedings.

This provision is important for prospective franchisees because it clarifies who is responsible for managing legal challenges related to the trademark. While Crown Gold Exchange has the right to control these proceedings, franchisees are obligated to notify Crown Gold Exchange of any use of, or claims to, a trademark that is identical or confusingly similar to the trademark licensed to them. However, Crown Gold Exchange is not required to take action after being notified.

Furthermore, Crown Gold Exchange will defend the franchisee (at its own expense) against any legal action by a third party alleging trademark infringement, and will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee, provided the franchisee uses the trademarks in accordance with the franchise agreement. However, Crown Gold Exchange may require the franchisee to modify or discontinue using a trademark, at the franchisee's expense. This highlights the importance of adhering to the franchise agreement regarding trademark usage to ensure the franchisor's support in case of legal issues.