Who has sole control of the defense and negotiations for settlement of a trademark infringement claim against a Focus Cfo franchisee?
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, Focus Cfo maintains sole control over the defense and all negotiations for settling or compromising trademark infringement claims brought against a franchisee. This means that if a third party claims that a Focus Cfo franchisee's use of the Focus Cfo trademark infringes on their rights, Focus Cfo, not the franchisee, will direct the legal strategy and settlement discussions.
However, the franchisee has a responsibility to promptly notify Focus Cfo in writing of any such claim. Additionally, the franchisee must cooperate with Focus Cfo in the defense or settlement of the claim. This cooperation likely includes providing necessary documentation, information, and assistance as requested by Focus Cfo and its legal counsel.
Focus Cfo's obligation to defend the franchisee against infringement claims has some limitations. Focus Cfo is not obligated if the infringement claim is based on a trademark that the franchisee modified without Focus Cfo's consent, if the franchisee used the trademark with non-Focus Cfo products or services, or if the franchisee used the trademark in a manner not authorized by the Franchise Agreement. Therefore, it is crucial for franchisees to adhere strictly to Focus Cfo's guidelines regarding trademark usage to ensure they are protected in case of an infringement claim.