Does Hck Hot Chicken have an obligation to pursue infringing users of the Marks?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We will indemnify you for and defend you against any claim brought against you by a third party that your use of the Marks, in accordance with the Franchise Agreement, infringes upon that party's intellectual property rights. We may require your assistance, but we will exclusively control any proceeding or litigation relating to our Marks. We have no obligation to pursue any infringing users of our Marks. If we learn of an infringing user, we will take the action appropriate, but we are not required to take any action if we do not feel it is warranted. You must notify us within three days if you learn that any party is using the Marks or a trademark that is confusingly similar to the Marks. We have the sole discretion to take such action as we deem appropriate to exclusively control any litigation or administrative proceeding involving a trademark licensed by us to you.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken is not obligated to pursue infringing users of their trademarks. While Hck Hot Chicken retains the right to take action against infringers if they deem it appropriate, they are not required to do so. However, franchisees are required to notify Hck Hot Chicken within three days if they become aware of any party using the Marks or a confusingly similar trademark. Hck Hot Chicken has the sole discretion to take action regarding litigation or administrative proceedings involving their licensed trademarks.
This means that if a third party infringes on Hck Hot Chicken's trademarks, franchisees cannot rely on Hck Hot Chicken to take legal action. While Hck Hot Chicken may choose to act, they are not legally bound to do so. This could potentially leave franchisees vulnerable to unfair competition or brand confusion in their local markets if Hck Hot Chicken does not actively protect its trademarks.
However, Hck Hot Chicken will indemnify and defend franchisees against claims by a third party that the franchisee's use of the Marks infringes upon the third party's intellectual property rights, provided the franchisee is using the Marks in accordance with the Franchise Agreement. This protection offers some security to franchisees, as Hck Hot Chicken will bear the costs of defending against such claims. Franchisees may be required to assist Hck Hot Chicken in these matters, but Hck Hot Chicken maintains exclusive control over any proceedings or litigation related to their Marks.
It is important for prospective franchisees to understand that while Hck Hot Chicken will defend them against infringement claims, the franchisee cannot depend on Hck Hot Chicken to actively police the marketplace for infringers. The franchisee must promptly report any suspected infringement to Hck Hot Chicken, but the ultimate decision to pursue legal action rests solely with Hck Hot Chicken.