If a Ledgers franchisee is notified of a claim regarding the Marks, what is the deadline for notifying Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you learn of any claim against you for alleged infringement, unfair competition, or similar claims about the Marks, you must promptly notify us. We are not required to take affirmative action when notified of these uses or claims.
We have the sole right to control any administrative proceedings or litigation involving a trademark licensed by us to you. The Franchise Agreement does not require us to participate in your defense or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a trademark licensed by us to you or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 34–36)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, if a franchisee learns of any claim against them for alleged infringement, unfair competition, or similar claims about the Marks, they must promptly notify Ledgers.
This means that as a Ledgers franchisee, you are obligated to inform Ledgers immediately upon becoming aware of any potential legal issues related to the trademarks you are licensed to use. The FDD does not specify an exact timeframe (e.g., within 24 hours, within 5 business days), but the use of the word "promptly" indicates that notification should be made as quickly as reasonably possible. This is a common requirement in franchise agreements, as the franchisor has a vested interest in protecting its trademarks and brand reputation.
It is important to note that Ledgers is not required to take any action after being notified of these claims. Ledgers retains the sole right to control any administrative proceedings or litigation involving its trademarks, and the Franchise Agreement does not obligate Ledgers to participate in the franchisee's defense or indemnify them for expenses or damages. Therefore, while you must inform Ledgers of any claims, you may be responsible for your own legal defense.