Must a Fitstop franchisee permit Fitstop to participate in any litigation involving the franchisee and 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, a franchisee must allow Fitstop to participate in any litigation involving the franchisee and Fitstop's trademarks. Specifically, the franchisee is obligated to notify Fitstop in writing if they become aware of any unauthorized use of Fitstop's trademarks.
This requirement ensures that Fitstop can protect its brand and intellectual property. By participating in litigation, Fitstop can control the defense and settlement of any proceeding related to its marks. However, Fitstop will indemnify, defend, and hold the franchisee harmless in connection with 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 will not reimburse the franchisee for expenses and legal fees for separate, independent legal counsel unless Fitstop approves the use of such counsel in writing before the franchisee engages them. Additionally, Fitstop will not reimburse the franchisee for disputes where Fitstop challenges the franchisee's use of the marks. This arrangement highlights the importance of franchisees adhering to Fitstop's standards and guidelines for using the trademarks to avoid potential disputes and associated costs.