What is the required action for a Focus Cfo franchisee to receive reimbursement for trademark defense costs?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO will defend any action brought against Franchisee to the extent that it is based on a claim that one or more of the Marks infringe upon the rights of a third party, valid and enforceable in the jurisdiction where the Marks are used, provided Franchisee notifies Focus CFO promptly in writing of any such claim. Focus CFO has sole control of the defense and all negotiations for the settlement or compromise of such claim, and Franchisee shall cooperate with Focus CFO in the defense or settlement of any claim. Focus CFO shall have no obligation to Franchisee for any claim of infringement based on Marks that have been modified by a party other than Focus CFO, Franchisee's use of the Marks with non-Focus CFO products or services, or Franchisee's use of the Marks in a manner otherwise prohibited by this Agreement. Franchisee must modify or discontinue the use of a Mark if Focus CFO modifies or discontinues it. Franchisee must not directly or indirectly contest Focus CFO's right to the Marks, trade secrets or business techniques that are part of Focus CFO's business.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo will defend any action brought against a franchisee if the action is based on a claim that one or more of the Focus Cfo marks infringe upon the rights of a third party. This protection is contingent upon the third party's rights being valid and enforceable in the jurisdiction where the marks are used.
To be eligible for Focus Cfo's defense, the franchisee must promptly notify Focus Cfo in writing of any such claim. Focus Cfo retains sole control of the defense and all negotiations for the settlement or compromise of such claim. The franchisee is required to cooperate with Focus Cfo in the defense or settlement of any claim.
However, Focus Cfo has no obligation to a Focus Cfo franchisee for any claim of infringement based on marks that have been modified by a party other than Focus Cfo, the franchisee's use of the marks with non-Focus Cfo products or services, or the franchisee's use of the marks in a manner otherwise prohibited by the Franchise Agreement. Additionally, the franchisee must modify or discontinue the use of a mark if Focus Cfo modifies or discontinues it, and the franchisee must not directly or indirectly contest Focus Cfo's right to the marks, trade secrets, or business techniques that are part of Focus Cfo's business.