Is Fat Shack aware of any pending litigation involving the marks?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
To our knowledge, there are no agreements in effect that significantly limit our rights to use or license the use of the Marks in any manner. To our knowledge, there are no presently effective determinations of the United States Patent and Trademark Office, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, any pending infringement, opposition or cancellation proceedings or any pending material litigation involving any of the Marks which are relevant to their use.
You must notify us immediately if you become aware of any apparent infringement of or challenge to your use of any Mark.
The Franchise Agreement does not contain any provisions under which we are required to defend or indemnify you against any claims of infringement or unfair competition arising out of your use of the Marks. However, we may take action to protect you against claims of infringement or unfair competition involving the Marks, when you are using the Marks in compliance with your Franchise Agreement, if, in the opinion of our counsel, the circumstances justify our intervention. If we decide to protect you, we will reimburse you for your costs, including attorney's fees and court costs, associated with any litigation we commence or defend on your behalf to protect the licensed Marks and your rights to use them, from amounts we recover in the litigation (if any), which are in excess of our costs. You are obligated to fully cooperate with us in any litigation we commence or defend related to the Marks. If we do not elect to protect you against claims of infringement or unfair competition, you may take steps to protect yourself at your own expense. We will control all proceedings and litigation involving the Marks, except that you will control your defense if we have elected not to protect you against claims of infringement or unfair competition.
We have no actual knowledge of either superior prior rights or infringing uses that could materially affect your use of the Marks.
Source: Item 13 — Trademarks (FDD pages 39–40)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack states that, to their knowledge, there are no agreements that significantly limit their rights to use or license the use of their marks. They also state that there are no effective determinations from the United States Patent and Trademark Office, the Trademark Trial and Appeal Board, or any court, and no pending infringement, opposition, cancellation proceedings, or material litigation involving any of the marks relevant to their use.
This statement provides some assurance to a potential Fat Shack franchisee that the trademarks they will be licensing are not currently subject to any known legal challenges that could impact their use. However, it is important to note that this statement is limited to Fat Shack's current knowledge.
Fat Shack also states that the Franchise Agreement does not require them to defend or indemnify franchisees against infringement claims arising from the use of the marks. However, Fat Shack may take action to protect a franchisee against claims of infringement or unfair competition involving the Marks, when the franchisee is using the Marks in compliance with their Franchise Agreement, if, in the opinion of their counsel, the circumstances justify their intervention. If Fat Shack decides to protect the franchisee, they will reimburse the franchisee for their costs, including attorney's fees and court costs, associated with any litigation Fat Shack commences or defends on the franchisee's behalf to protect the licensed Marks and the franchisee's rights to use them, from amounts they recover in the litigation (if any), which are in excess of their costs. The franchisee is obligated to fully cooperate with Fat Shack in any litigation Fat Shack commences or defends related to the Marks. If Fat Shack does not elect to protect the franchisee against claims of infringement or unfair competition, the franchisee may take steps to protect themselves at their own expense. Fat Shack will control all proceedings and litigation involving the Marks, except that the franchisee will control their defense if Fat Shack has elected not to protect them against claims of infringement or unfair competition. Fat Shack also states that they have no actual knowledge of either superior prior rights or infringing uses that could materially affect the franchisee's use of the Marks. A prospective franchisee should consider these factors and perhaps seek independent legal advice to fully understand the risks and responsibilities associated with using Fat Shack's trademarks.