Can Floyds 99 Holdings, LLC commence or prosecute an action related to infringement of the Marks?
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 Floyds 99's 2025 Franchise Disclosure Document, the franchisor or Floyd's 99 Holdings, LLC, has the sole right to own, license, and control the use of the "FLOYD'S 99" service mark. If a franchisee becomes aware of potential infringement concerning trademarks similar to the Marks, they must inform Floyds 99 in writing.
Floyds 99 retains the sole discretion to decide whether to take action regarding any potential infringement or unauthorized use of its marks. Floyds 99 may initiate or pursue legal action in its own name or in the name of Floyd's 99 Holdings, LLC. If Floyds 99 deems it necessary for the protection and quality control of its Marks and Licensed Methods, it can include the franchisee as a party in the legal action.
Floyds 99 is responsible for covering the reasonable costs associated with any such legal action, including attorney's fees. The franchisee is obligated to fully cooperate with Floyds 99 in any litigation. Floyds 99 will indemnify and protect the franchisee from any claims, losses, liabilities, or damages, including legal fees, arising from the franchisee's authorized use of the Marks, provided that the franchisee complies with the terms of the franchise agreement and promptly notifies Floyds 99 of any claims for indemnity.
In summary, Floyds 99 retains control over its trademarks and will manage any legal actions related to infringement, protecting the franchisee from related expenses and liabilities as long as the franchisee adheres to the franchise agreement.