What action will Fitstop take if a franchisee notifies them of unauthorized use of Fitstop Marks?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You must immediately notify us in writing if you become aware of any unauthorized use of our Marks or other proprietary information and you must permit us to participate in any litigation involving you and our Marks. We will take the action we think appropriate. We will indemnify, defend and hold you harmless in connection with any third-party claims that are brought against you that arise solely out of your authorized use of any Marks in the manner we prescribe, provided you notify us of the proceeding within three days and you have complied with our directions with regard to the proceeding. We have the right to control the defense and settlement of any proceeding.
We will not reimburse you for your expenses and legal fees for separate, independent legal counsel, unless we approve of your use of such counsel in writing prior to you engaging counsel. We will not reimburse you for disputes where we challenge your use of our Marks.
Source: Item 13 — TRADEMARKS (FDD pages 37–38)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee informs Fitstop of any unauthorized use of its Marks or other proprietary information, Fitstop will take action it deems appropriate. The franchisee is obligated to provide immediate written notification of such unauthorized use and must allow Fitstop to participate in any related litigation.
Fitstop will defend and indemnify the franchisee against third-party claims arising solely from the franchisee's authorized use of the Marks, provided the franchisee notifies Fitstop of the proceeding within three days and complies with Fitstop's directions regarding the proceeding. Fitstop retains the right to control the defense and settlement of any such proceeding.
However, Fitstop will not cover the franchisee's expenses and legal fees for independent legal counsel unless Fitstop has given prior written approval for the franchisee to engage such counsel. Additionally, Fitstop will not provide reimbursement for disputes where they are challenging the franchisee's use of the Marks. This arrangement is fairly typical in franchising, as franchisors need to protect their brand and trademarks while also controlling the legal strategy related to them.