What should a Floyds 99 franchisee do if they become aware of a possible trademark infringement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.4 Mark Infringement.
The Franchisee shall notify the Franchisor in writing of any possible infringement or illegal use by others of a trademark the same as or confusingly similar to the Marks or of any copyrighted work of the Franchisor which may come to its attention.
The Franchisee acknowledges that the Franchisor shall have the right, in its sole discretion, to determine whether any action will be taken on account of any possible infringement or illegal use.
The Franchisor may commence or prosecute such action in the Franchisor's own name, the name of Floyd's 99 Holdings, LLC and may join the Franchisee as a party to the action if the Franchisor determines it to be reasonably necessary for the continued protection and quality control of the Marks, Licensed Methods and copyrighted works.
The Franchisor shall bear the reasonable cost of any such action, including attorneys' fees.
The Franchisee must fully cooperate with the Franchisor in any such litigation.
The Franchisor shall indemnify and hold the Franchisee harmless from, and reimburse the Franchisee for, any loss, liability, claim or damages (collectively, the "Claims"), and all reasonable costs, expenses and attorneys' fees incurred defending any Claims brought against the Franchisee, or in any action in which the Franchisee is named as a party, which arises out of or is related to the Franchisee's authorized use of any Mark or copyrighted work of the Franchisor, which use is in compliance with the terms of this Agreement.
The Franchisee shall timely notify the Franchisor of any Claims for which it is seeking indemnity hereunder.
The Franchisor, at its option, shall be entitled to control the defense of any action or proceeding involving any Claims.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee becomes aware of a potential trademark infringement, they are required to notify Floyds 99 in writing. This notification should detail any possible infringement or unauthorized use of a trademark that is the same as, or confusingly similar to, the Floyds 99 marks. It also applies to any copyrighted work belonging to Floyds 99 that the franchisee notices.
Floyds 99 retains the sole discretion to decide whether or not to take action regarding the infringement. Floyds 99 can initiate legal action in its own name or in the name of Floyd's 99 Holdings, LLC. Floyds 99 also has the option to include the franchisee as a party in the legal action if it is deemed necessary to protect the trademarks, licensed methods, and copyrighted works. Floyds 99 will bear the reasonable costs of any legal action, including attorney's fees.
The franchisee is obligated to fully cooperate with Floyds 99 in any litigation related to trademark infringement. Furthermore, Floyds 99 will indemnify the franchisee, protecting them from any losses, liabilities, claims, damages, and all reasonable costs, expenses, and attorney's fees incurred while defending against claims or in any action where the franchisee is named as a party, provided that the claims arise from the franchisee's authorized use of Floyds 99's marks or copyrighted works in compliance with the franchise agreement. The franchisee must promptly inform Floyds 99 of any claims for which they seek indemnification, and Floyds 99 has the right to control the defense of any action or proceeding involving such claims.