What is an Itan franchisee required to do if they discover an infringing use of the Itan Marks?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately if you discover an infringing use (or challenge to your use) of the Marks. We will take the action we deem appropriate. We are not required to take any action if we do not feel it is warranted. You may not control any proceeding or litigation involving our Marks.
The Franchise Agreement does not require that we: (a) protect your right to use the Marks; (b) protect you against claims of infringement or unfair competition arising out of your use of the Marks; or (c) participate in your defense or indemnify you for expenses or damages you incur if you are a party to an administrative or judicial proceeding involving our Marks or if the proceeding is resolved in a manner unfavorable to you.
Source: Item 13 — TRADEMARKS (FDD pages 33–35)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee discovers an infringing use of the Itan Marks, they must immediately notify Itan. After being notified, Itan will then take whatever action it deems appropriate. However, Itan is not required to take any action if it does not feel it is warranted. The franchisee is not allowed to control any proceeding or litigation involving Itan's Marks.
This means that while franchisees are responsible for being vigilant about protecting the Itan brand by reporting potential trademark infringements, they have no control over how Itan chooses to address the issue. Itan has the sole discretion to decide whether or not to pursue legal action against the infringing party.
Furthermore, the Franchise Agreement does not require Itan to protect the franchisee's right to use the Marks, protect them against claims of infringement, or participate in their defense or indemnify them for expenses or damages if they are involved in a legal proceeding related to the Marks. This places the burden and risk of trademark protection primarily on Itan, but also leaves the franchisee vulnerable to potential legal issues without direct support from Itan.