What action must an Hck Hot Chicken franchisee take if they receive a Trademark Claim?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.10 Indemnification of Marks. Provided that Franchisee is in compliance with this Agreement, Franchisor will indemnify Franchisee and Franchisee's Owners and hold them harmless for, from and against any and all costs and expenses incurred by any of them as a result of or in connection with any claim asserted against Franchisee and/or Franchisee's Owners based upon the violation of any third party's intellectual property rights caused by Franchisee's use of the Marks in compliance with the terms of this Agreement and the Brand Standards Manual. Franchisee must promptly notify Franchisor of any such claim and agrees to fully cooperate with Franchisor in the defense of any such claim.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if a franchisee faces a claim for violating a third party's intellectual property rights through the use of Hck Hot Chicken's trademarks, the franchisee must promptly notify Hck Hot Chicken of the claim.
Provided the franchisee is in compliance with the franchise agreement, Hck Hot Chicken will indemnify the franchisee and their owners, protecting them from costs and expenses related to the claim. This protection applies to claims based on the franchisee's use of Hck Hot Chicken's marks, as long as that use complies with the terms of the agreement and the Brand Standards Manual.
The franchisee is required to fully cooperate with Hck Hot Chicken in defending against any such claim. This cooperation is essential for Hck Hot Chicken to effectively manage the legal defense and protect its trademarks. This clause highlights the importance of franchisees adhering to brand standards and using trademarks as directed to maintain the integrity of the brand and ensure coverage under the indemnification agreement.