Under what condition will Floyds 99 reimburse a franchisee for damages and reasonable costs incurred in litigation about 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 copyrights or defend a franchisee's use of copyrighted items. However, Floyds 99 will reimburse a franchisee for damages and reasonable costs incurred in litigation about copyrighted items if the franchisee's use of the copyrighted work was in compliance with the terms of the Franchise Agreement.
This means that if a franchisee is sued for copyright infringement related to their Floyds 99 shop, Floyds 99 may cover the franchisee's legal costs and any resulting damages, but only if the franchisee was using the copyrighted materials as permitted by the franchise agreement. It is important for franchisees to adhere to the franchise agreement to ensure they are protected in the event of a copyright claim.
Floyds 99 also retains the right to control the defense of any action or proceeding involving these claims. Additionally, Floyds 99 requires franchisees to modify or discontinue their use of the copyrights if Floyds 99 requires such changes, and the franchisee is responsible for the expenses associated with these modifications or discontinuations.