Under what condition will Desi District defend a franchisee against trademark infringement claims?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third-party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
Superior Prior Rights and Infringing Uses
We do not know of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District will defend a franchisee against legal action by a third party alleging trademark infringement if the franchisee uses Desi District's trademarks in accordance with the franchise agreement. Desi District will cover the expenses of this defense.
Furthermore, Desi District will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee, provided the franchisee has used the trademarks according to the franchise agreement.
However, Desi District retains the right to require a franchisee to modify or discontinue using a trademark, and the franchisee will bear this expense. Desi District also states that they are not aware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks.