What must a Dryject franchisee do to assist in protecting the Marks in litigation or other proceedings?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) We and/or Our affiliates own rights in, or to certain patents that are material to the Franchise and Our System. You shall not, at any time during the Term of this Agreement or after its termination or expiration contest the validity or ownership rights in any patents currently issued to or hereafter applied for by Us and/or Our affiliates. If litigation involving the Patents is instituted or threatened against You, You must notify Us promptly and cooperate fully with Us in defending or settling the litigation. Should We elect to protect the Patents or protect You against claims of infringement, We will have the right to control any litigation involving a patent licensed by Us to You.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, if litigation involving patents is instituted or threatened against a franchisee, the franchisee must promptly notify Dryject and fully cooperate in defending or settling the litigation. Dryject retains the right to control any litigation involving a patent licensed by them to the franchisee, should they elect to protect the patents or protect the franchisee against claims of infringement.
This means that if a Dryject franchisee faces a lawsuit related to the patents used in their franchise operations, they are obligated to inform Dryject immediately and assist them in the legal process. This assistance could involve providing documentation, testimony, or other forms of support that Dryject deems necessary for the defense or settlement of the case.
This requirement is fairly standard in franchising, as franchisors typically want to maintain control over the defense of their intellectual property. By retaining control, Dryject can ensure a consistent legal strategy and protect the overall brand. However, it also means that the franchisee may have limited say in how the litigation is handled, as Dryject's interests may not always align perfectly with those of the franchisee.