Who has the right to direct and control any litigation involving the Marks for Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
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 has the right to direct and control any administrative proceeding or litigation involving its Marks, including any settlement. This means that if there is a legal dispute about the trademarks, Face Foundrie, not the franchisee, will make the decisions about how to handle the case.
This control extends to various scenarios, including unauthorized use of the Marks, challenges to their validity, or challenges to Face Foundrie's ownership or right to license the Marks. While Face Foundrie has the right to take action against infringement, it is not obligated to do so.
Face Foundrie will defend a franchisee against third-party claims arising from the franchisee's use of the Marks, and will bear the costs of any resulting judgment or settlement, provided the franchisee has used the Marks in accordance with the Franchise Agreement. However, if the franchisee has not used the Marks in accordance with the Franchise Agreement, the franchisee will bear the cost of defense, including any judgment or settlement. Franchisees must sign all documents and take necessary actions to assist in the defense or prosecution of any litigation related to their use of the Marks and will be reimbursed for out-of-pocket costs unless the litigation results from their non-compliant use of the Marks.
This arrangement is typical in franchising, as the franchisor needs to protect its brand and trademarks consistently across all locations. It also means that Face Foundrie will make the strategic decisions about how to respond to legal challenges, which can be a benefit to franchisees who may not have the expertise or resources to handle such matters on their own.