Must a Focus Cfo franchisee cooperate with Focus Cfo in the defense or settlement of a trademark claim?
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.
Source: Item 13 — Trademarks (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee must cooperate with Focus Cfo in the defense or settlement of any trademark claim. Specifically, if a third party brings an action against the franchisee alleging trademark infringement, Focus Cfo will defend the action, provided the franchisee notifies Focus Cfo promptly in writing. Focus Cfo retains sole control over the defense and all negotiations for settlement or compromise.
This obligation to cooperate means the franchisee must assist Focus Cfo by providing information, documentation, and other support as needed for the defense or settlement. Failure to cooperate could potentially jeopardize the defense of the claim and expose the franchisee to liability.
However, Focus Cfo has no obligation to the franchisee for any infringement claim based on trademarks that have been modified by someone other than Focus Cfo, if the franchisee uses the trademarks with non-Focus Cfo products or services, or if the franchisee uses the trademarks in a manner prohibited by the Franchise Agreement. The franchisee must also modify or discontinue the use of a trademark if Focus Cfo modifies or discontinues it. This is a fairly standard clause in franchise agreements, as the franchisor needs to maintain control over its brand and protect its trademarks.