Does Focus Cfo have sole control of all negotiations for the 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 Focus Cfo's 2025 Franchise Disclosure Document, Focus Cfo maintains sole control over negotiations for settling trademark infringement claims. Specifically, if a third party brings an action against a Focus Cfo franchisee alleging trademark infringement, Focus Cfo will manage the defense and settlement negotiations, provided the franchisee promptly notifies Focus Cfo in writing about the claim. The franchisee is required to cooperate with Focus Cfo during the defense or settlement process.
However, Focus Cfo assumes no obligation for infringement claims if the franchisee has modified the trademark, used it with non-Focus Cfo products or services, or used it in a manner not authorized by the franchise agreement. In such cases, the franchisee may be responsible for handling the claim independently.
This arrangement is typical in franchising, as it allows Focus Cfo to protect its brand and trademarks consistently across all franchise locations. It also means that franchisees must adhere strictly to Focus Cfo's guidelines regarding trademark usage to ensure Focus Cfo will support them in case of an infringement claim. Franchisees benefit from Focus Cfo's expertise in trademark law and its resources for defending against such claims, but they must also relinquish control over the legal strategy and settlement decisions.