Under what conditions will Deck Medic protect a franchisee against claims of infringement related to the Licensed Marks?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
e expenses that you incur and pay in complying with our written instructions.
We will protect your right to use the Licensed Marks and other related rights and protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and otherwise, as we instruct you. We will indemnify you against direct damages for trademark infringement in a proceeding arising out of your use of the Licensed Marks, provided your use of the Licensed Marks comply with the terms of your Franchise Agreement, the Manuals, our written instructions, and that you have timely notified us of the claim, have
given us sole control of the defense and settlement of the claim, and you are in compliance with your Franchise Agreement. If we defend the claim, we have no obligation to indemnify or reimburse you with respect to any fees or disbursements of any attorney that you retain.
If any third party establishes, to our satisfaction and in our sole discretion, that its rights to the marks are, for any legal reason, superior to any of our rights, then we will modify and/or replace the Licensed Marks and you must use the variances or other service marks, trademarks or trade names required by and as determined by us. Our sole liability and obligation in such event is to reimburse you for the direct out-of-pocket costs of complying with this obligation, which you must document to our satisfaction, including, by way of example, alterations in signage and replacement of marketing materials.
Source: Item 13 — TRADEMARKS (FDD pages 32–33)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic will protect a franchisee's right to use the Licensed Marks and other related rights, and defend against claims of infringement and unfair competition related to the Licensed Marks. This protection is contingent upon the franchisee using the Licensed Marks in accordance with the terms of the Franchise Agreement, as designated in the Manuals, and as otherwise instructed by Deck Medic.
Deck Medic will indemnify a franchisee against direct damages for trademark infringement in a legal proceeding arising from the franchisee's use of the Licensed Marks. However, this indemnification is conditional. The franchisee's use of the Licensed Marks must comply with the terms of the Franchise Agreement, the Manuals, and Deck Medic's written instructions. Additionally, the franchisee must provide timely notification of the claim to Deck Medic, and give Deck Medic sole control of the defense and settlement of the claim. The franchisee must also be in compliance with the Franchise Agreement.
If Deck Medic defends the claim, it is not obligated to indemnify or reimburse the franchisee for any fees or disbursements of any attorney that the franchisee chooses to retain. Furthermore, if a third party establishes rights to the marks that are superior to Deck Medic's rights, Deck Medic will modify or replace the Licensed Marks. In such a case, the franchisee must use the revised marks as determined by Deck Medic. Deck Medic's sole liability in this event is to reimburse the franchisee for the direct out-of-pocket costs of complying with this obligation, such as alterations in signage and replacement of marketing materials, provided these costs are documented to Deck Medic's satisfaction.
These stipulations are fairly standard in franchising. Franchisees must adhere to brand standards and operational guidelines to maintain the integrity of the trademark and receive the franchisor's support in case of infringement claims. The franchisee's compliance with the franchise agreement is paramount to receiving protection from Deck Medic against infringement claims.