What action will Focus Cfo take upon notification of a trademark infringement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify Focus CFO immediately when you learn about an infringement of or challenge to your use of our trademark. Focus CFO will take the action we think appropriate. Focus CFO will defend any action brought against you to the extent that it is based on a claim that the trademark infringes upon the rights of a third party, valid and enforceable in the jurisdiction where the trademark is used, provided you notify us promptly in writing of any such claim. We have sole control of the defense and all negotiations for the settlement or compromise of such claim, and you shall cooperate with us in the defense or settlement of any claim. Focus CFO shall have no obligation to you for any claim of infringement based on a trademark that has been modified by a party other than Focus CFO, your use of the trademark with non-Focus CFO products or services, or your use of the trademark in a manner otherwise prohibited by the Franchise Agreement.
You must modify or discontinue the use of a trademark if Focus CFO modifies or discontinues it. We will have no liability or obligation, and you will have no right to compensation or otherwise, because of any discontinuation, modification or change. You must not directly or indirectly contest our right to our trademarks, trade secrets or business techniques that are part of our business.
Source: Item 13 — Trademarks (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, if a franchisee notifies Focus Cfo about a trademark infringement, Focus Cfo will take whatever action it deems appropriate. Focus Cfo will defend the franchisee in any action brought against them if the action is based on a claim that the trademark infringes upon a third party's rights, provided the rights are valid and enforceable in the jurisdiction where the trademark is used. The franchisee must also promptly notify Focus Cfo in writing of any such claim. Focus Cfo maintains sole control over the defense and all negotiations for settlement or compromise, and the franchisee is required to cooperate with Focus Cfo in the defense or settlement of any claim.
However, Focus Cfo has no obligation to the franchisee for any infringement claim if the trademark has been modified by someone other than Focus Cfo, if the franchisee uses the trademark with non-Focus Cfo products or services, or if the franchisee uses the trademark in a manner prohibited by the Franchise Agreement. The franchisee must modify or discontinue the use of a trademark if Focus Cfo modifies or discontinues it, and Focus Cfo will not be liable for any losses resulting from such changes. The franchisee is prohibited from contesting Focus Cfo's rights to its trademarks, trade secrets, or business techniques.
This arrangement is typical in franchising, where the franchisor owns the trademarks and controls their use to maintain brand consistency and protect the brand's reputation. The franchisee's responsibility to notify Focus Cfo promptly of any potential infringement is crucial, as it allows Focus Cfo to take timely action to protect its trademarks. The limitations on Focus Cfo's liability for infringements caused by unauthorized modifications or uses of the trademarks are also standard, as the franchisor cannot control how franchisees might misuse the brand assets.
In practical terms, a Focus Cfo franchisee needs to be vigilant about protecting the brand and must adhere strictly to Focus Cfo's guidelines for trademark usage. Any deviation from these guidelines could result in the franchisee being solely responsible for any infringement claims. Franchisees should also ensure they understand the scope of permitted trademark use as defined in the Franchise Agreement to avoid potential disputes.