What conditions must a Dryer Vent Squad franchisee meet to be indemnified for trademark infringement?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
We will protect your right to use the Licensed Marks and other related rights and protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and otherwise, as we instruct you. We will indemnify you against direct damages for trademark infringement in a proceeding arising out of your use of the Licensed Marks, provided your use of the Licensed Marks comply with the terms of your Franchise Agreement, the Manuals, our written instructions, and that you have timely notified us of the claim, have given us sole control of the defense and settlement of the claim, and you are in compliance with your Franchise Agreement. If we defend the claim, we have no obligation to indemnify or reimburse you with respect to any fees or disbursements of any attorney that you retain.
Source: Item 13 — TRADEMARKS (FDD pages 38–39)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, Dryer Vent Squad will protect a franchisee's right to use the Licensed Marks and defend against infringement claims, provided the franchisee adheres to specific conditions. To be indemnified against direct damages for trademark infringement, a Dryer Vent Squad franchisee must use the Licensed Marks in compliance with the terms outlined in the Franchise Agreement, the Manuals, and any written instructions provided by Dryer Vent Squad.
Furthermore, the franchisee must promptly notify Dryer Vent Squad of any infringement claim and grant Dryer Vent Squad sole control over the defense and settlement of the claim. The franchisee must also be in full compliance with the Franchise Agreement at the time of the claim. If Dryer Vent Squad assumes the defense, it is not obligated to cover any attorney fees or disbursements incurred by the franchisee if they choose to retain their own counsel.
These conditions are fairly standard in franchising. Franchisors typically retain control over trademark defense to ensure consistent brand protection. The requirement for franchisees to follow the Dryer Vent Squad's guidelines and manuals is also typical, as it ensures uniform brand representation and quality control. Franchisees should carefully review the Franchise Agreement and Manuals to fully understand their obligations regarding trademark usage to maintain their indemnification rights.