What must a Dq Treat licensee do if they become aware of improper use or infringement of the Trademarks?
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 FDD, if a licensee becomes aware of any improper use or infringement of the Dq Treat Trademarks, they must promptly notify the company. The licensee must also promptly inform the company of any claim arising out of the licensee's use of any Trademark. Furthermore, the licensee is required to cooperate with any action taken by Dq Treat in response to the infringement.
Dq Treat retains control over any litigation related to trademark infringement and decides whether to initiate, prosecute, or settle a suit, including the terms of any settlement. This means that while the franchisee is obligated to report any potential infringements, the franchisor maintains full authority over the legal strategy and actions taken to protect its trademarks.
This clause is typical in franchise agreements, as the franchisor needs to protect its brand and trademarks consistently across all locations. By requiring franchisees to report infringements and cooperate with legal actions, Dq Treat ensures that it can maintain brand control and take appropriate measures to address any unauthorized use of its trademarks. The franchisee's role is primarily to be vigilant and communicative, while the franchisor handles the legal complexities.