What recourse does a Floyds 99 franchisee have if they are subject to Claims related to 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, franchisees have certain protections and obligations regarding trademark infringement claims. If a franchisee is subject to claims related to the authorized use of Floyds 99's marks or copyrighted work, and that use complies with the franchise agreement, Floyds 99 will indemnify and hold the franchisee harmless. This means Floyds 99 will cover any loss, liability, claim, or damages, including reasonable costs, expenses, and attorney's fees, incurred in defending against such claims.
Specifically, Floyds 99 has the right to determine whether to take action regarding any potential trademark infringement or illegal use of marks similar to Floyds 99's. Floyds 99 may initiate legal action in its own name or include the franchisee in the action if deemed necessary to protect the marks and licensed methods. Floyds 99 is responsible for covering the reasonable costs of such actions, including attorney's fees. The franchisee is obligated to fully cooperate with Floyds 99 in any related litigation.
To benefit from this protection, a Floyds 99 franchisee must promptly notify Floyds 99 of any claims for which they seek indemnity. Floyds 99, at its discretion, has the right to control the defense of any action or proceeding involving such claims. This arrangement ensures that Floyds 99 maintains control over the brand's defense while providing financial protection to the franchisee for authorized use of the trademarks.
This is a fairly typical arrangement in franchising, where the franchisor retains control over brand protection but also assumes responsibility for liabilities arising from authorized use of the brand's intellectual property. Prospective franchisees should carefully review these provisions to understand their rights and obligations in case of trademark-related claims.