Must a Focus Cfo franchisee notify Focus CFO promptly in writing of any claim of 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 Focus Cfo's 2025 Franchise Disclosure Document, a franchisee must notify Focus CFO promptly in writing of any claim of trademark infringement. Specifically, the franchisee must notify Focus CFO immediately upon learning of any infringement or challenge to the use of Focus CFO's trademark. This notification requirement is crucial because it triggers Focus CFO's obligation to defend the franchisee against any action based on claims that the trademark infringes upon a third party's rights. However, this defense is contingent on the franchisee providing prompt written notice of the claim. Focus CFO retains sole control over the defense and any settlement negotiations, and the franchisee is required to cooperate in the defense or settlement process.
Focus CFO's obligation to defend the franchisee is not absolute. Focus CFO has no obligation for infringement claims based on trademarks modified by someone other than Focus CFO, the franchisee's use of the trademark with non-Focus CFO products or services, or any use of the trademark that violates the Franchise Agreement. Additionally, the franchisee must modify or discontinue using a trademark if Focus CFO makes changes or discontinues it, without any right to compensation.
This arrangement is typical in franchising, as franchisors need to protect their trademarks and ensure consistent brand representation. By requiring prompt notification and retaining control over trademark defense, Focus CFO aims to safeguard its brand and manage legal risks effectively. The franchisee benefits from this arrangement by receiving legal support from Focus CFO in trademark-related disputes, provided they adhere to the notification and usage guidelines outlined in the Franchise Agreement.