What happens if a Devon Creek franchisee does not give timely notice of copyright infringement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
You must notify us immediately when you learn about an infringement of or challenge to your use of the Principal Marks or other Marks. Licensor and we will take any action we think appropriate and, if you have given us timely notice and are in full compliance with the Franchise Agreement, we will indemnify you for all expenses and damages arising from any claim challenging your authorized use of the Principal Marks or other Marks. Licensor and we have the right to control any administrative proceedings or litigation involving the Principal Marks or other Mark licensed by us to you. You must cooperate fully with Licensor and us in defending and/or settling the litigation.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 35–36)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee's failure to provide timely notification regarding any infringement or challenges to the use of the Principal Marks or other Marks has specific repercussions. If a Devon Creek 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 franchisee's authorized use of the Principal Marks or other Marks. This indicates that the franchisee may be responsible for covering expenses and damages if they do not provide timely notice.
This requirement underscores the importance of franchisees promptly informing Devon Creek of any potential intellectual property issues. By doing so, the franchisee can potentially avoid shouldering the financial burden of defending against claims related to trademark or copyright infringement. Devon Creek retains the right to control any administrative proceedings or litigation involving the Marks and requires the franchisee's full cooperation in defending or settling any litigation.
In the event that Devon Creek can no longer use the current Marks, they reserve the right to substitute different Marks. If this occurs, the franchisee may be required, at their own expense, to modify or stop using any Mark, including the Principal Marks, or to use one or more additional or substitute Marks. This highlights the potential costs and operational adjustments that a franchisee might face due to changes in Devon Creek's branding or intellectual property strategy.