Is Floyds 99 obligated to protect the copyrights or defend a franchisee's use of copyrighted items?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
You must tell us immediately in writing if you learn about an infringement or challenge to our use of our copyrights. We have the right, in our sole discretion, to determine whether any action will be taken on account of any possible infringement or illegal use. We may commence or prosecute such action in the Franchisor's own name, the name of Floyd's 99 Holdings, LLC and may join you as a party to the action. We shall bear the reasonable cost of any such action, including attorneys' fees. You must fully cooperate with us in any such litigation. Although we are not obligated to protect the copyrights or defend your use of the copyrighted items, we will reimburse you for damages and reasonable costs incurred in litigation about them, if your use of the copyrighted work was in compliance with the terms of the Franchise Agreement. At our option, we shall be entitled to control the defense of any action or proceeding involving any of these claims. You must modify or discontinue your use of the copyrights if we require modification or discontinuance, at your expense.
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, Floyds 99 is not obligated to protect the copyrights or defend a franchisee's use of copyrighted items. However, franchisees must notify Floyds 99 immediately in writing if they learn of any copyright infringement or challenges to Floyds 99's copyrights. Floyds 99 has the sole discretion to decide whether to take action regarding any potential infringement or illegal use.
If Floyds 99 decides to take action, it may initiate legal proceedings in its own name or the name of Floyd's 99 Holdings, LLC, and may include the franchisee as a party in the action. Floyds 99 will bear the reasonable costs of such actions, including attorney's fees. Franchisees are required to fully cooperate with Floyds 99 in any litigation.
Floyds 99 will reimburse franchisees for damages and reasonable costs incurred in litigation related to the use of copyrighted works, provided that the franchisee's use was compliant with the terms of the Franchise Agreement. Floyds 99 has the option to control the defense of any action involving these claims. However, franchisees are required to modify or discontinue their use of the copyrights if Floyds 99 requires such changes, and the franchisee will bear the expense of doing so.