What level of cooperation is required from Floyds 99 franchisees in litigation regarding copyright infringement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees must fully cooperate with Floyds 99 in any litigation regarding trademark or copyright infringement. This obligation is outlined in the franchise agreement, emphasizing the importance of protecting Floyds 99's intellectual property. Franchisees are also required to notify Floyds 99 in writing of any potential infringements or illegal use of trademarks or copyrighted works that come to their attention.
Floyds 99 retains the sole discretion to decide whether to take action against any possible infringement or illegal use. Floyds 99 may initiate legal action in its own name or the name of Floyd's 99 Holdings, LLC, and may include the franchisee as a party if deemed reasonably necessary to protect its trademarks, licensed methods, and copyrighted works. Floyds 99 is responsible for covering the reasonable costs of such legal actions, including attorney's fees.
Furthermore, Floyds 99 will indemnify, hold harmless, and reimburse the franchisee for any losses, liabilities, claims, damages, and reasonable costs, including attorney's fees, incurred in defending against claims or actions arising from the franchisee's authorized use of Floyds 99's trademarks or copyrighted works, provided such use complies with the franchise agreement. The franchisee must promptly inform Floyds 99 of any claims for which they seek indemnification, and Floyds 99 has the option to control the defense of any action or proceeding involving such claims. This arrangement is typical in franchising, where the franchisor takes the lead in protecting its brand and intellectual property, while the franchisee is expected to assist in these efforts.