Regarding the Even Hotels Brand System, is an Even Hotels franchisee permitted to initiate litigation against infringers to enforce or protect the Brand System?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify Holiday immediately when you learn of an infringement, or a challenge to your use of the Marks. You must also notify Holiday promptly of any objections, demands, controversies, allegations or actions asserted or taken by third parties involving any of the Marks or any part of the Brand System of which you become aware and of any potentially infringing or unauthorized uses of any of the Marks or any part of the Brand System of which you become aware. You must sign any documents Holiday or its counsel consider necessary to protect the Marks or any part of the Brand System and obtain or maintain their continued validity and enforceability. However, the License does not require Holiday to take action against infringers or to indemnify or defend you if you are a party to a proceeding involving the Marks.
SCH, Holiday and their affiliates have the right to control any administrative proceedings or litigation involving a trademark licensed by Holiday to you. Only SCH, Holiday and their affiliates have the right and responsibility to handle disputes concerning use of all or any part of the Brand System, at their expense. You must cooperate fully with SCH, Holiday and their affiliates in these matters. Any sums SCH, Holiday or their affiliates recover as a result of disputes with third parties regarding use of the Brand System is theirs. You may not initiate litigation against infringers to enforce or protect the Brand System.
If Holiday modifies or discontinues use of any of the Marks licensed to you as a result of any proceeding or settlement, then you must comply with Holiday's instructions in order to implement the modification or discontinuation. You will have no right to any compensation or other remedies from SCH, Holiday or any of its or their respective subsidiaries, affiliates or parents due to any modification or discontinuation of any of the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 83–85)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are not permitted to initiate litigation against infringers to enforce or protect the Brand System. The FDD specifies that only SCH, Holiday, and their affiliates have the right and responsibility to handle disputes concerning the use of any part of the Brand System. These entities also bear the expenses associated with such disputes.
The Even Hotels franchisee is required to notify Holiday immediately upon learning of any infringement or challenges to the use of the Marks. Additionally, franchisees must inform Holiday promptly of any objections, demands, controversies, allegations, or actions asserted by third parties involving the Marks or any part of the Brand System. Franchisees are obligated to sign documents deemed necessary by Holiday or its counsel to protect the Marks and maintain their validity and enforceability.
Any sums recovered due to disputes with third parties regarding the use of the Brand System belong to SCH, Holiday, or their affiliates. If Holiday modifies or discontinues the use of any licensed Marks as a result of any proceeding or settlement, the franchisee must comply with Holiday's instructions. The franchisee will not be entitled to any compensation or remedies from SCH, Holiday, or their affiliates due to any modification or discontinuation of the Marks. This arrangement is typical in franchising, where the franchisor retains control over brand protection and enforcement.