What must a Management Recruiters franchisee do if they learn about an infringement of the Marks?

According to Management Recruiters's 2024 Franchise Disclosure Document, a franchisee must immediately notify Management Recruiters if they become aware of any infringement or challenge to the use of the Marks. Management Recruiters will then decide what action to take. If the franchisee provides timely notice, is in full compliance with the Franchise Agreement, and properly uses the Marks, Management Recruiters will cover all expenses and damages from any claim challenging the franchisee's authorized use of the Marks.

Management Recruiters retains the right to control any administrative proceedings or litigation involving the licensed Marks. The franchisee is obligated to fully cooperate with Management Recruiters in defending or settling any such litigation. This means a franchisee cannot independently pursue legal action regarding the Marks without Management Recruiters' involvement.

This clause is typical in franchise agreements, as the franchisor needs to protect its brand and trademarks. By requiring franchisees to report infringements and cooperate in legal matters, Management Recruiters maintains control over its brand's image and legal defense. The indemnification clause offers some financial protection to franchisees, but it is contingent on their compliance with the agreement and proper use of the Marks.