What is the Devon Creek franchisee's obligation to notify Devon Creek of copyright infringement?

According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee has a responsibility to notify Devon Creek immediately via both email and telephone of any apparent infringement or challenge to the franchisee's use of any intellectual property. This includes any claim by any person of any rights in any intellectual property. The purpose of this notification is to allow Devon Creek to take appropriate action to protect its intellectual property rights and brand.

Following notification, the franchisee is restricted in who they can communicate with regarding the infringement, challenge, or claim. They are only permitted to communicate with Devon Creek, any designated affiliate, their counsel, and the franchisee's counsel. This restriction ensures that Devon Creek maintains control over the response to the infringement and that consistent messaging is used.

Item 13 of the FDD also states that the franchisee must notify Devon Creek immediately when they learn about an infringement of or challenge to their use of the Principal Marks or other Marks. If the franchisee provides timely notice and is in full compliance with the Franchise Agreement, Devon Creek will indemnify the franchisee for all expenses and damages arising from any claim challenging the authorized use of the Principal Marks or other Marks. Devon Creek and the Licensor have the right to control any administrative proceedings or litigation involving the Principal Marks or other Mark licensed to the franchisee, and the franchisee must cooperate fully in defending and/or settling the litigation.

This obligation is a standard practice in franchising, as franchisors need to protect their trademarks and other intellectual property. Failure to promptly notify Devon Creek of any potential infringement could result in the franchisee being held liable for damages or legal costs associated with the infringement. It is also important to note that Devon Creek does not have a federal registration for their principal trademark, which means that their trademark does not have as many legal benefits and rights as a federally registered trademark. If their right to use the trademark is challenged, the franchisee may have to change to an alternative trademark, which may increase their expenses.