What are the specific obligations of a Desi District franchisee regarding trademarks (Item 9) and how do these obligations relate to the trademarks listed in Item 13?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
see must temporarily cease operations of the Business and remedy the dangerous condition. Desi District Franchise Group shall have no liability to Franchisee or any other person for action or failure to act with respect to a dangerous condition.
ARTICLE 12. MARKS
- 12.1 Authorized Marks. Franchisee shall use no trademarks, service marks or logos in connection with the Business other than the Marks. Franchisee shall use all Marks specified by Desi District Franchise Group, and only in the manner as Desi District Franchise Group may require. Franchisee has no rights in the Marks other than the right to use them in the operation of the Business in compliance with this Agreement. All use of the Marks by Franchisee and any goodwill associated with the Marks, including any goodwill arising due to Franchisee's operation of the Business, will inure to the exclusive benefit of Desi District Franchise Group.
- 12.2 Change of Marks. Desi District Franchise Group may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after Desi District Franchise Group makes any such change, Franchisee must comply with the change, at Franchisee's expense.
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Desi District Franchise Group shall defend Franchisee (at Desi District Franchise Group's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Desi District Franchise Group will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (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.
- 12.4 Name. If Franchisee is an entity, it shall not use the words "Desi District" or any confusingly similar words in its legal name.
**ARTICLE 13.
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees have several obligations regarding the brand's trademarks, which are detailed in Item 13. Franchisees are only allowed to use trademarks, service marks, or logos that Desi District authorizes and must use them as specified by Desi District. Franchisees do not gain any rights to the marks other than using them in compliance with the Franchise Agreement, and all goodwill associated with the marks benefits Desi District exclusively. Desi District can also add, modify, or discontinue any marks used under the system, and franchisees must comply with these changes at their own expense within a reasonable time.
Franchisees must promptly notify Desi District if they become aware of any potential infringement of a mark by a third party, allowing Desi District to decide whether to pursue a claim against the infringing party. Desi District retains the exclusive right to control any legal actions related to infringement of the marks. Furthermore, if a franchisee is an entity, it cannot use "Desi District" or any confusingly similar words in its legal name. This ensures that the brand's identity remains distinct and protected.
Desi District is responsible for defending the franchisee against any third-party action alleging infringement by the franchisee's use of a mark, provided the franchisee has used the marks in accordance with the Franchise Agreement. Desi District will also cover expenses and damages if the action is resolved unfavorably to the franchisee. The franchise agreement also obligates the franchisee to notify Desi District of any use of, or claims to, a trademark that is identical or confusingly similar to a trademark licensed to them, although Desi District is not required to take affirmative action upon notification. These stipulations ensure that Desi District maintains control over its trademarks while providing some protection to franchisees operating under the brand.