Is Focus Cfo responsible for infringement claims based on a Focus Cfo franchisee's use of the trademark in a manner prohibited by the Franchise Agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Focus Cfo will defend a franchisee against actions claiming trademark infringement, provided the franchisee promptly notifies Focus Cfo in writing. However, Focus Cfo assumes no obligation for infringement claims 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. This means a Focus Cfo franchisee bears the risk of trademark infringement liability if they deviate from the approved usage of the Focus Cfo trademarks.
This stipulation highlights the importance of adhering strictly to the brand standards and usage guidelines provided by Focus Cfo. A franchisee's unauthorized modification or misuse of the trademarks could lead to legal action for which Focus Cfo will not provide support or defense. This could result in the franchisee incurring significant legal expenses and potential damages.
In addition, the Focus Cfo franchise agreement stipulates that the franchisee must hold harmless, defend, and indemnify Focus Cfo from losses, damages, costs, and expenses (including attorney's fees) arising from the franchisee's infringement or alleged infringement of a third party's trademark. This further emphasizes the franchisee's responsibility to ensure proper and authorized use of the Focus Cfo trademarks.
Therefore, a prospective Focus Cfo franchisee should carefully review and understand the permitted uses of the Focus Cfo trademarks as outlined in the Franchise Agreement and related brand guidelines. They should also seek legal counsel to fully understand their obligations and potential liabilities related to trademark usage.