Who has the right to control litigation related to infringement of Face Foundrie trademarks?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately when you learn about an infringement of or challenge to your use of a Mark. We will take the action we think appropriate. We have the right to exclusively control any litigation, USPTO proceeding, or other proceeding arising out of any infringement, challenge or claim or otherwise relating to any Mark.
You must not directly or indirectly contest our right to the Marks, trade secrets or business techniques that are part of our business. You must promptly notify us of any unauthorized use of the Marks, any challenge to the validity of the Marks, or any challenge to our ownership of, right to use and to license others to use, or your right to use, the Marks. We have the right to direct and control any administrative proceeding or litigation involving the Marks, including any settlement. We have the right, but not the obligation, to take action against uses by others that may constitute infringement of the Marks. We will defend you against any third-party claim, suit, or demand arising out of your use of the Marks, and bear the cost of any judgment or settlement, if we determine that you have used the Marks in accordance with the Franchise Agreement. However, if we determine that you have not used the Marks in accordance with the Franchise Agreement, you must bear the cost of defense, including the cost of any judgment or settlement. If there is any litigation relating to your use of the Marks, you must sign all documents and do all things as may be necessary to carry out a defense or prosecution, including becoming a nominal party to any legal action. Unless litigation results from your use of the Marks in a manner inconsistent with the terms of the Franchise Agreement we will also reimburse you for your out-ofpocket costs.
Source: Item 13 — TRADEMARKS (FDD pages 46–47)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie retains exclusive control over any litigation, USPTO proceeding, or other proceeding arising out of any infringement, challenge, or claim relating to its trademarks. This means that Face Foundrie, not the franchisee, decides how to respond to any legal issues concerning the trademarks.
This control extends to directing and managing any administrative or legal proceedings related to the trademarks, including settlements. While Face Foundrie has the right to take action against infringements, it is not obligated to do so. However, Face Foundrie will defend a franchisee against third-party claims arising from the franchisee's use of the trademarks, provided the franchisee has used the marks in accordance with the Franchise Agreement.
If the franchisee has used the trademarks correctly, Face Foundrie will cover the costs of any judgment or settlement. Conversely, if the franchisee's use of the trademarks violates the Franchise Agreement, the franchisee is responsible for all defense costs, including judgments and settlements. Franchisees are required to sign documents and take necessary actions to assist in the defense or prosecution of any litigation, potentially becoming a nominal party in legal actions. Unless the litigation arises from the franchisee's non-compliant use of the trademarks, Face Foundrie will reimburse the franchisee for out-of-pocket costs.
This arrangement is typical in franchising, as it allows the franchisor to protect the brand's trademarks consistently across all franchise locations. It also means that franchisees must adhere strictly to Face Foundrie's guidelines for using the trademarks to ensure they are protected in case of legal disputes.