If Epcon Communities undertakes the defense of copyright litigation, what is the franchisee required to do?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our sole discretion, undertake the defense, prosecution or settlement of any litigation relating to the Copyrights. If we do so, you are required under the Franchise Agreement to sign documents and to render other assistance as is in our opinion reasonably necessary to carry out the defense, prosecution or settlement. The Franchise Agreement does not require us to participate in your defense and/or to indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving Copyrights, or if a proceeding involving a copyright registration is resolved unfavorably to you.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 53–54)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, if Epcon Communities chooses to defend, prosecute, or settle any litigation related to its copyrights, franchisees are obligated to assist. Specifically, the franchisee must sign documents and provide other assistance that Epcon Communities deems reasonably necessary for the defense, prosecution, or settlement of the litigation.
This requirement means that franchisees may need to allocate time and resources to cooperate with Epcon Communities in legal matters. This could involve providing access to project-related documents, offering testimony, or consulting with legal counsel at the request of Epcon Communities. While Epcon Communities retains sole discretion over the handling of the litigation, franchisees must actively participate in the process as directed.
It's important to note that the Franchise Agreement does not obligate Epcon Communities to defend or indemnify franchisees in copyright-related proceedings where the franchisee is a party, or if a copyright proceeding is resolved unfavorably to the franchisee. This clarifies that while franchisees must assist Epcon Communities if it takes the lead in litigation, they bear the risk of legal costs and damages if they are directly involved in a copyright dispute.