Who has the right to control litigation involving the Engineering For Kids Proprietary Marks?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us of any unauthorized use of the Proprietary Marks, any challenge to the validity of the Proprietary Marks, or any challenge to our/ LaunchLife USA's ownership of, right to use and to license others to use, or your right to use, the Proprietary Marks. We have the right to direct and control any administrative proceeding or litigation involving the Proprietary Marks, including any settlement. We (directly or through LaunchLife USA) have the right, but not the obligation, to take action against uses by others that may constitute infringement of the Proprietary Marks. We will defend you against any third party claim, suit, or demand arising out of your use of the Proprietary Marks. If we determine that you have used the Proprietary Marks in compliance with the Franchise Agreement, we will bear the cost of defense, including the cost of any judgment or settlement, as well as your out of pocket costs (except that you will bear the salary costs of your employees). If we determine that you have not used the Proprietary Marks in compliance with the Franchise Agreement, you must bear the cost of defense, including the cost of any judgment or settlement, and you must promptly reimburse us for those amounts. If there is any litigation due to your use of the Proprietary Marks, you must sign all documents and do all things as may be necessary to carry out a defense or prosecution, including becoming a nominal party to any legal action.
Source: Item 13 — TRADEMARKS (FDD pages 41–42)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids has the right to direct and control any administrative proceeding or litigation involving the Proprietary Marks, including any settlement. Engineering For Kids (directly or through LaunchLife USA) has the right, but not the obligation, to take action against uses by others that may constitute infringement of the Proprietary Marks.
Engineering For Kids will defend a franchisee against any third-party claim, suit, or demand arising out of the franchisee's use of the Proprietary Marks, provided the franchisee has used the Proprietary Marks in compliance with the Franchise Agreement. In such cases, Engineering For Kids will bear the cost of defense, including the cost of any judgment or settlement, as well as the franchisee's out-of-pocket costs, excluding employee salary costs.
However, if Engineering For Kids determines that the franchisee has not used the Proprietary Marks in compliance with the Franchise Agreement, the franchisee must bear the cost of defense, including the cost of any judgment or settlement, and must promptly reimburse Engineering For Kids for those amounts. The franchisee is also obligated to sign all documents and take all actions necessary to carry out a defense or prosecution, including becoming a nominal party to any legal action related to their use of the Proprietary Marks.
This allocation of control and responsibility is typical in franchising, as the franchisor needs to protect its brand and trademarks, but it also places a significant burden on franchisees to ensure they adhere to the franchisor's usage guidelines to receive support in case of litigation.