Under what condition will Floyds 99 protect franchisees against claims of infringement or unfair competition?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We will protect you against claims of infringement or unfair competition, provided that you use the Marks in compliance with the terms of the Franchise Agreement. We pay all costs, including attorneys' fees and court costs, associated with any litigation we commence or defend on your behalf to protect the Marks and your right to use them. You must cooperate with us in any litigation. Any apparent infringement of or challenge to your use of any Mark should be brought to our attention immediately and you may not
communicate with any person other than us or our counsel regarding any such matter. You may not settle any claim without our written consent. We have sole discretion to take any appropriate action. We have the right to control exclusively any litigation, United States Patent and Trademark Office proceeding or any other administrative proceeding arising out of any infringement, challenge or claim relating to any Mark.
Source: Item 13 — TRADEMARKS (FDD pages 41–43)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 will protect its franchisees against claims of infringement or unfair competition if the franchisee uses the marks in compliance with the terms of the Franchise Agreement. This protection includes Floyds 99 covering all costs associated with any litigation they commence or defend on the franchisee's behalf to protect the marks and the franchisee's right to use them, including attorneys' fees and court costs.
However, franchisees must cooperate with Floyds 99 in any litigation. Franchisees are required to immediately report any apparent infringement or challenge to their use of any mark to Floyds 99 and are prohibited from communicating with anyone other than Floyds 99 or their counsel regarding such matters. Furthermore, franchisees cannot settle any claim without Floyds 99's written consent.
Floyds 99 retains sole discretion to take any appropriate action and has the exclusive right to control any litigation, United States Patent and Trademark Office proceeding, or any other administrative proceeding arising out of any infringement, challenge, or claim relating to any mark. This means franchisees must relinquish control of any legal matters related to trademark issues to Floyds 99.