Who has the right to control litigation related to the Dq Treat trademarks?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ADQ is not obligated to protect your right to use the Trademarks, or to protect you against infringement or unfair competition claims arising out of your use of the Trademarks, or to participate in your defense or indemnify you. ADQ has the right to control any litigation related to the Trademarks and the right to decide to pursue or settle any infringement actions related to the Trademarks. You must notify ADQ promptly of any infringement or unauthorized use of the Trademarks 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. If ADQ determines that a claim by a party that its rights to use the Trademarks are superior and requires changes or substitutions to the Trademarks, you must immediately make the changes or substitutions required by ADQ at your expense. You do not have any rights under the franchise agreement if ADQ requires you to modify or discontinue using a trademark.
Source: Item 13 — UItem 13U***:** U**Trademarks (FDD pages 49–50)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, ADQ, the parent company, retains control over any litigation related to the trademarks. This means that ADQ has the authority to decide whether to pursue or settle any infringement actions concerning the Dq Treat trademarks. While franchisees must promptly inform ADQ of any trademark infringement or unauthorized use and cooperate with any actions ADQ undertakes, ADQ is not obligated to take action upon notification.
This arrangement is typical in franchising, as the franchisor needs to protect the brand's trademarks consistently across all franchise locations. It also means that Dq Treat franchisees do not have the right to independently pursue legal action to protect the trademarks. They must rely on ADQ to take appropriate action.
Furthermore, if ADQ determines that a third party's claim to the trademarks is superior and requires changes or substitutions to the trademarks, franchisees must immediately implement those changes at their own expense. Franchisees do not have any recourse if ADQ requires them to modify or discontinue using a trademark. This highlights the importance of the trademark to the franchise system and the control ADQ maintains over its use.
Prospective franchisees should be aware that they bear the financial burden of any required changes to the trademarks. They should also consider the potential impact on their business if they are required to modify or discontinue using a trademark. It would be prudent to inquire about any known trademark disputes or potential challenges that could affect the use of the Dq Treat trademarks in their specific market.