Who has the right to control administrative proceedings or litigation involving a trademark licensed by Deka Lash?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash retains the sole right to control any administrative proceedings or litigation involving a trademark that they license to franchisees. This means that if a legal issue arises concerning the use of the Deka Lash trademarks, the franchisor, not the franchisee, will manage the legal process.

This arrangement has significant implications for prospective franchisees. While Deka Lash is responsible for managing trademark-related legal matters, the Franchise Agreement does not obligate them to participate in a franchisee's defense or to cover any expenses or damages if the franchisee is involved in such proceedings and the outcome is unfavorable. Therefore, a Deka Lash franchisee could potentially bear the financial burden of legal issues related to the brand's trademarks, even though they do not control the legal strategy.

This type of arrangement is not uncommon in franchising, as franchisors typically want to maintain control over their brand and trademarks. However, it's crucial for franchisees to understand their potential financial exposure in case of trademark disputes. Prospective Deka Lash franchisees should carefully consider this aspect and potentially seek legal counsel to fully understand their rights and obligations regarding trademark protection and litigation. They may also want to inquire about the availability of insurance to cover such potential legal costs.