Does Gold Star warrant that the franchisee's use of the Marks will not infringe on the rights of others?

f it becomes advisable at any time in the COMPANY's sole discretion for the COMPANY and/or FRANCHISEE to modify or discontinue use of any of the Marks, and/or to use one or more additional or substitute marks, names, logos or indicia, FRANCHISEE agrees to do so at its expense within a reasonable time after the COMPANY so instructs FRANCHISEE in writing.

• 6.7 Company Protection of Marks. The COMPANY warrants and represents that it has such rights in and to the Marks so as to enable it to license FRANCHISEE's use of them in accordance with the terms of this Agreement and that such use will not infringe the legal or equitable rights of any persons, partnerships, limited liability companies or corporations. The COMPANY agrees to take whatever actions it deems reasonably necessary to protect the Marks and the goodwill associated therewith. The COMPANY retains the exclusive right, in its sole discretion exercised in good faith, to determine and undertake such actions, if any,

• as it deems appropriate to prevent the infringement of the Marks or the diminution of the goodwill in the Marks.
• 6.8 Notice of Infringement. FRANCHISEE agrees to advise the COMPANY promptly in writing of any potentially infringing uses of the Marks, or colorable imitations or variations thereof, by others, and of any suits brought, or claims or demands made or threatened against FRANCHISEE involving the Marks. In the event a third party commences a legal action against FRANCHISEE challenging FRANCHISEE's right to use the Marks as authorized herein, the COMPANY (a) may, in its sole discretion, assume the defense of FRANCHISEE, utilizing counsel of the COMPANY's choice, against such legal action, and (b) shall indemnify FRANCHISEE against all damages for infringement for which FRANCHISEE is held liable in such action resulting from FRANCHISEE's authorized use of the Marks pursuant to and in compliance with the Agreement, provided that:
  • 6.8.1 FRANCHISEE provides the COMPANY with timely notice of the institution of the action;
  • 6.8.2 FRANCHISEE cooperates fully with the COMPANY's counsel in defending against the action; and
  • 6.8.3 The COMPANY retains ultimate control over the strategy involved in defending against and/or resolving the action.
• 6.9 Franchisee's Cooperation. If the COMPANY undertakes the defense or prosecution of any litigation pertaining to the right to use the Marks, FRANCHISEE agrees to execute any and all documents and to do such acts and things as may be necessary, in the opinion of counsel for the COMPANY, to carry out such defense or prosecution, whether the action is in the name of the COMPANY or in the name of FRANCHISEE. Subject to Section 6.8, above, FRANCHISEE shall be entitled to retain independent legal counsel, provided that the COMPANY shall not be responsible for the cost of any such legal counsel.
• 6.10 Franchisee's Failure to Cooperate. Section 6.7 notwithstanding, if FRANCHISEE fails to meet its obligations under Sections 6.8 and 6.9 with respect to any particular event, the COMPANY's warranties and obligations under Sections 6.7 and 6.8 shall become void with respect to such particular event, and the COMPANY shall have no liability for costs incurred or damages awarded against FRANCHISEE.

Source: Item 23 — Receipts (FDD pages 53–163)