Who has the exclusive right to control any copyright litigation related to Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us of any unauthorized use of our copyrighted materials or any unauthorized use or disclosure of confidential information, including by your employees. You must notify us of any challenge to your right to use or the ownership of any copyrighted materials or confidential information. We are not required to protect or defend our copyrights or confidential information although we intend to do so when it is in the best interests of the System. We have the exclusive right to control any copyright litigation. We have the right to keep all sums obtained in settlement or as a damages award in any proceeding or litigation without any obligation to share any portion of the settlement sums or damages award with you. While we are not required to participate in your defense or to indemnify you for damages or expenses you incur if you are a party to any administrative or judicial proceeding involving our confidential information or other information in which we claim common law rights and copyright protection, we may reimburse you for your liability and reasonable costs in connection with defending our confidential information and other information in which we claim common law rights and copyright protection.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 48–49)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie retains the exclusive right to control any copyright litigation pertaining to its copyrighted materials. This means that if there is a legal dispute involving the copyright of Face Foundrie's materials, the franchisor, not the franchisee, will manage the litigation.
This control extends to the financial outcomes of such litigation. Face Foundrie is entitled to keep all sums obtained from settlements or damages awarded in any legal proceeding, without any obligation to share these funds with the franchisee. This arrangement is fairly typical in franchising, as the franchisor owns the intellectual property and bears the costs of protecting it.
While Face Foundrie is not obligated to participate in a franchisee's defense or indemnify them for damages or expenses if the franchisee is involved in legal proceedings related to Face Foundrie's confidential information or copyrighted materials, Face Foundrie may choose to reimburse the franchisee for their liability and reasonable costs in defending Face Foundrie's confidential information and other information in which Face Foundrie claims common law rights and copyright protection. This discretionary reimbursement offers some potential financial relief for the franchisee, but it is not guaranteed.
In summary, franchisees must understand that Face Foundrie maintains full control over copyright litigation and its financial outcomes, while any support for the franchisee's legal defense is at Face Foundrie's discretion.