Who has the right to initiate a claim against a party infringing on Desi District's trademarks?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Infringement by Third Party. Franchisee shall promptly notify Desi District Franchise Group if Franchisee becomes aware of any possible infringement of a Mark by a third party. Desi District Franchise Group may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control. Desi District Franchise Group 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 page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group has the authority regarding trademark infringement claims. Specifically, if a franchisee becomes aware of potential trademark infringement by a third party, they must promptly inform Desi District Franchise Group.
Desi District Franchise Group then has the sole discretion to decide whether to initiate or join any legal claim against the party infringing on the trademark. This means that while franchisees are responsible for reporting potential infringements, the decision to take legal action rests entirely with Desi District Franchise Group.
Furthermore, Desi District Franchise Group retains exclusive control over any legal action related to infringement of the brand's trademarks. This includes both pursuing claims against infringers and defending against claims of infringement. This control ensures brand consistency and strategic alignment in protecting the Desi District brand's intellectual property.