What action must a Hydrodog franchisee take if there is an administrative or judicial proceeding challenging the use of Hydrodog's marks?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If any administrative or judicial proceeding arising from a claim or challenge to your use of any of our marks, you must immediately notify us, and we may take any such action as we deem appropriate in order to preserve and protect the ownership, identity and validity of the marks. We are only obligated to defend you from any claims arising from your use of our primary marks. If we decide to modify or discontinue the use of any mark and/or use one or more additional or substitute marks, you will be responsible for the tangible costs (such as replacing signs and materials) associated with such a change. We are not required to reimburse you for any costs you incur in relation to any change or substitution, such as the cost of changing stationery or signage, and have no obligation or liability to you as a result of any change or substitution.
You are required to immediately notify us of any use of, or claims of rights to, a mark identical to or confusingly similar to our marks. We have the right, but not the obligation, to bring any action against any third party using such a similar mark. You are required to participate in any such action we bring against a third party at your own expense. We have the right to control any such litigation or administrative proceedings, including any settlement.
Source: Item 13 — TRADEMARKS (FDD pages 32–33)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee faces any administrative or judicial proceeding due to a claim or challenge against their use of Hydrodog's trademarks, they must immediately notify Hydrodog. Hydrodog then has the option to take any action it deems necessary to protect the ownership, identity, and validity of its marks. Hydrodog is only obligated to defend the franchisee from claims arising from the use of Hydrodog's primary marks.
This means that if a Hydrodog franchisee is sued for trademark infringement related to the use of Hydrodog's name or logo, they are required to inform Hydrodog immediately. Hydrodog reserves the right to decide how to respond to the legal challenge, which could include taking legal action to defend its trademarks. However, Hydrodog's obligation to defend the franchisee is limited to claims arising from the use of Hydrodog's primary marks, implying that the franchisee might be responsible for their own defense in other trademark-related disputes.
Furthermore, if Hydrodog decides to modify or discontinue a mark, the franchisee is responsible for the tangible costs associated with the change, such as replacing signs and materials. Hydrodog is not required to reimburse the franchisee for these costs or any other expenses related to the change, such as stationery. This could create an unexpected financial burden for the franchisee if Hydrodog decides to rebrand or update its trademarks.
In addition, the franchisee is required to immediately notify Hydrodog of any unauthorized use of similar marks. The franchisee is required to participate in any action Hydrodog brings against a third party at their own expense. Hydrodog retains the right to control any litigation or administrative proceedings, including settlements.