What is a Focus Cfo franchisee's obligation regarding cooperation in the defense 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 has a responsibility to cooperate with Focus Cfo in the defense or settlement of any trademark claim. This means that if a third party brings a legal action against the franchisee alleging trademark infringement, the franchisee must work with Focus Cfo to defend against the claim. Focus CFO retains sole control over the defense and all negotiations for settlement.
This obligation to cooperate is important because Focus Cfo wants to maintain a consistent brand image and protect its trademarks. By retaining control over the defense of trademark claims, Focus Cfo can ensure that the claims are handled in a way that is consistent with its overall legal strategy. The franchisee's cooperation is essential to ensure a robust defense.
However, Focus Cfo has no obligation to defend the franchisee if the infringement claim is based on the franchisee's modification of the trademark, use of the trademark with non-Focus Cfo products or services, or use of the trademark in a manner prohibited by the Franchise Agreement. Franchisees must also notify Focus CFO immediately in writing of any such claim.