What is the dependency for Fly To Fit Franchise to defend a franchisee against infringement?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Fly To Fit Franchise shall defend Franchisee (at Fly To Fit Franchise's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Fly To Fit Franchise will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit Franchise is obligated to defend a franchisee against infringement claims if the franchisee has used the Marks in accordance with the Franchise Agreement. Specifically, Fly To Fit will defend the franchisee at its own expense against any action by a third party alleging infringement due to the franchisee's use of a Mark.
Furthermore, Fly To Fit will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee. This means Fly To Fit will cover the franchisee's costs if they lose the infringement case, provided the franchisee adhered to the agreement regarding the use of Fly To Fit's trademarks.
It is important to note that this obligation is contingent upon the franchisee's proper use of the Marks as outlined in the agreement. If the franchisee deviates from the approved usage, Fly To Fit may not be required to provide a defense or indemnification. Additionally, the Franchise Agreement stipulates that the franchisee must promptly notify Fly To Fit of any potential infringement of the Marks by a third party, allowing Fly To Fit to take appropriate action. Fly To Fit retains the exclusive right to control any legal defense or prosecution related to infringement of the Marks.