What is the timeframe Punchh must provide Dq Treat franchisees with written notice of a potential infringement claim and an updated version of the Punchh Services or Documentation?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Punchh shall have no obligation with respect to any such Claim to the extent caused by (a) Customer's combination of software or hardware from third-parties not provided by Punchh (or not expressly approved in writing by Punchh) that are not intended for or reasonably contemplated to be used by the Customer or with the Customer's environment or application and that combination results in a Claim, or (b) Customer's use of a prior version of the Punchh Services or Documentation if the Claim would have been avoided had such prior version not been used by Customer, subject to and contingent upon, Punchh providing to Customer at least sixty (60) days prior written notice (of as much advance notice as is feasible given the nature of the Claim) of (1) the potential infringement Claim and (2) an updated, implementation-ready version of the Punchh Services or Documentation, at no additional cost to Customer.
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, Punchh must provide Dq Treat franchisees with written notice at least sixty (60) days in advance of a potential infringement claim. This notice must include both the potential infringement claim itself and an updated, implementation-ready version of the Punchh Services or Documentation. This updated version is provided at no additional cost to the franchisee. The FDD also states that Punchh will provide as much advance notice as is feasible given the nature of the claim.
This stipulation is contingent upon the franchisee using the Punchh Services or Documentation as intended. If the infringement claim arises due to the franchisee's use of a prior version of the Punchh Services or Documentation, and the claim could have been avoided by using the updated version, Punchh's obligation is voided. This highlights the importance of franchisees keeping their Punchh software and documentation up to date.
This clause aims to protect Dq Treat franchisees from potential legal issues arising from the use of the Punchh platform. By providing advance notice and updated software, Punchh takes responsibility for addressing infringement risks. However, franchisees must promptly implement these updates to maintain their protection and avoid potential liability. This also limits Punchh's liability regarding infringement claims.