If someone infringes on the Dq Treat Trademarks, who controls the litigation?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.5 Trademark Litigation. In the event any person or entity improperly uses or infringes the Trademarks, Company or its affiliates will control all litigation and determine whether to institute, prosecute or settle a suit, the terms of settlement, and whether to take any other action. Licensee must promptly notify Company of any improper use or infringement of which Licensee is aware, promptly inform Company of any claim arising out of Licensee's use of any Trademark, and cooperate with any action taken by Company in response.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, Dq Treat or its affiliates maintain control over any litigation related to the Trademarks. This means that if another party improperly uses or infringes upon the Dq Treat Trademarks, Dq Treat has the authority to decide whether to initiate, pursue, or settle a lawsuit. They also determine the terms of any settlement and whether any other action should be taken.
As a Dq Treat franchisee, you are obligated to promptly inform Dq Treat of any improper use or infringement of the Trademarks that you become aware of. You must also inform Dq Treat of any claims arising from your use of any Trademark and cooperate with any actions taken by Dq Treat in response to such claims.
This arrangement is typical in franchising, as the franchisor needs to protect its brand and trademarks consistently across all locations. By retaining control over trademark litigation, Dq Treat ensures a unified legal strategy and protects the overall value and reputation of the brand. However, franchisees benefit from the franchisor bearing the costs and burdens of litigation.