Who bears the costs of prosecuting infringements of the Proprietary Marks for Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Franchisee shall promptly report all likely infringements of the Proprietary Marks to Subfranchisor and shall assist Subfranchisor or EXIT in resolving conflicts, without reimbursement or remuneration. Subfranchisor will investigate likely infringements and will undertake such efforts to protect the Proprietary Marks as it deems reasonable and appropriate. Subfranchisor, at its sole option, may undertake the prosecution of any such infringements and shall bear all costs of any such prosecution, except as otherwise provided in this Agreement.
- (C) If Subfranchisor or EXIT undertakes the defense or prosecution of any litigation relating to the Proprietary Marks, Franchisee agrees, without reimbursement or remuneration, to execute any and all documents and to do such acts and things as, in the opinion of legal counsel for Subfranchisor or EXIT, may be reasonably necessary for Franchisee to assist in such defense or prosecution.
(D) Franchisee shall make every effort to protect, maintain and advance the trade name, service mark, and the System, and shall report imitations and infringements upon them.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the subfranchisor typically bears the costs of prosecuting infringements of Exit's proprietary marks. The franchisee is obligated to report any likely infringements of the proprietary marks to the subfranchisor and assist in resolving conflicts.
The subfranchisor will investigate reported infringements and undertake efforts to protect the proprietary marks as deemed reasonable and appropriate. The subfranchisor has the option to prosecute infringements and will bear all associated costs, unless otherwise specified in the agreement.
If the subfranchisor or Exit decides to defend or prosecute any litigation related to the proprietary marks, the franchisee must execute necessary documents and assist in the legal process without expecting reimbursement or remuneration. The franchisee is also expected to protect, maintain, and promote the trade name, service mark, and the Exit system, and report any imitations or infringements.