Who has the right to control litigation related to patents and copyrights for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ADQ is not obligated to protect you against infringement or unfair competition claims arising out of your use of any patents or copyrights, or to participate in your defense or indemnify you. ADQ has the right to control any litigation related to any patents and copyrights and the right to decide to pursue or settle any infringement actions related to the patents or copyrights. You must notify ADQ promptly of any infringement or unauthorized use of the patents and copyrights of which you become aware and cooperate with any action that ADQ undertakes; however, ADQ is not required by the franchise agreement to take affirmative action when notified of such uses. You do not have any rights under the franchise agreement if ADQ requires you to modify or discontinue using any subject matter covered by a patent or copyright.
Source: Item 14 — U***:** U**Patents, Copyrights, and Proprietary Information (FDD pages 50–51)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, ADQ, as the franchisor, retains the right to control any litigation related to patents and copyrights. This means that if any legal issues arise concerning the patents or copyrights associated with the Dq Treat franchise, ADQ has the authority to manage and direct the legal proceedings.
This control extends to the decision of whether to pursue or settle any infringement actions related to these patents or copyrights. As a franchisee, you are required to promptly inform ADQ of any infringement or unauthorized use of the patents and copyrights that you become aware of and cooperate with any actions ADQ decides to take.
However, it's important to note that ADQ is not obligated to protect you against infringement or unfair competition claims arising from your use of these patents or copyrights, nor are they required to participate in your defense or indemnify you. Furthermore, ADQ is not required by the franchise agreement to take any affirmative action even when notified of such uses. If ADQ requires you to modify or discontinue using any subject matter covered by a patent or copyright, you have no rights under the franchise agreement. This allocation of rights and responsibilities is typical in franchising, where the franchisor protects the brand's intellectual property while the franchisee operates under its license.
In practical terms, this means that while Dq Treat franchisees must report any potential intellectual property issues, the franchisor decides how to respond, and the franchisee may bear the costs of changes if required. Prospective franchisees should be aware of this dynamic and factor it into their assessment of the franchise opportunity.