Is Face Foundrie required to protect or defend its copyrights or confidential information?
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 is not required to protect or defend its copyrights or confidential information. However, Face Foundrie states that it intends to do so when it is in the best interests of the Face Foundrie system. Face Foundrie retains the exclusive right to control any copyright litigation and to keep all sums obtained in settlements or damages awarded, without any obligation to share these with the franchisee.
While Face Foundrie is not required to participate in a franchisee's defense or indemnify them in proceedings involving Face Foundrie's confidential information, Face Foundrie may choose to reimburse the franchisee for their liability and reasonable costs related to defending Face Foundrie's confidential information. The franchisee is responsible for notifying Face Foundrie of any unauthorized use of copyrighted materials or confidential information, including by their employees, and of any challenges to Face Foundrie's rights to use or ownership of copyrighted materials or confidential information.
This arrangement means that while Face Foundrie retains control over its intellectual property and any related legal actions, the franchisee bears the initial responsibility for protecting that intellectual property at their location and must inform Face Foundrie of any potential issues. The fact that Face Foundrie is not obligated to defend its intellectual property or provide financial support to franchisees in related legal proceedings could pose a financial risk to franchisees. Prospective franchisees should seek clarification on what specific situations Face Foundrie would consider it in the best interest of the system to defend its intellectual property.