What is a Monicals Pizza franchisee obligated to do to assist the Franchisor in protecting the Marks in litigation?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
.2.1.1.
6. PROPRIETARY MARKS
6.1 Ownership
Franchisee's right to use the Marks is derived solely from this Agreement, is non-exclusive and is limited to the conduct of business by Franchisee pursuant to, and in compliance with, this Agreement and all applicable standards, specifications and operating procedures prescribed from time to time by Franchisor. Any unauthorized use of the Marks by Franchisee is a breach of this Agreement and an infringement of the rights of Franchisor in and to the Marks. Franchisee's use of the Marks, and any goodwill created thereby, shall inure to the benefit of Franchisor. Franchisee shall not at any time acquire an ownership interest in the Marks by virtue of any use it may make of the Marks. This Agreement does not confer any goodwill, title or interest in the Marks to Franchisee. Franchisee shall not, at any time during the term of this Agreement or after its termination or expiration, contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of any of the Marks.
6.2 Limitations on Use
Franchisee shall not use any Mark or portion of any Mark as part of any business entity name. Franchisee shall not use any Mark in connection with the sale of any unauthorized product or service or in any other manner not expressly authorized in writing by Franchisor. Franchisee shall give such notices of trademark and service mark registrations as Franchisor specifies and obtain such fictitious or assumed name registrations as may be required under applicable law to do business as a Franchised Restaurant. Franchisee shall not register or seek to register as a trademark or service mark, either with the United States Patent and Trademark Office or any state or foreign country, any of the Marks or a trademark or service mark that is confusingly similar to any Mark licensed to Franchisee. Franchisee shall include on its letterhead, forms, cards and other such identification, and shall display at any office location, a prominent notice stating that the Franchised Restaurant is an "Independently Owned and Operated Monical's Pizza Franchise" of Franchisee.
6.3 Notification of Infringements and Claims
Franchisee shall immediately notify Franchisor of any infringement of the Marks or challenge to its use of any of the Marks or claim by any person of any rights in any of the Marks. Franchisee shall not communicate with any person other than Franchisor and Franchisor's counsel in connection with any such infringement, challenge or claim; provided, however, Franchisee may communicate with Franchisee's counsel at Franchisee's expense. Franchisor shall have the right to take such action as deemed appropriate and the right to exclusively control any litigation or other proceeding arising out of any infringement, challenge, or claim or otherwise relating to any of the Marks. Franchisee shall execute any and all instruments and documents, render such assistance, and do such acts and things as may, in the opinion of Franchisor's counsel, be necessary or advisable to protect and maintain Franchisor's interests in any such litigation or other proceeding or to otherwise protect and maintain Franchisor's interest in the Marks.
6.4 Indemnification for Use of Marks
Franchisor shall reimburse Franchisee for all expenses reasonably incurred by Franchisee in any trademark or similar proceeding disputing Franchisee's authorized use of any Mark, provided that Franchisee has timely notified Franchisor of such proceeding and has complied with this Agreement and Franchisor's directions in responding to such proceeding. At Franchisor's option, Franchisor or its designee may defend and control the defense of any proceeding arising directly from Franchisee's use of any Mark. This indemnification shall not include the expense to Franchisee of removing signage or discontinuance of the use of the Marks. This indemnification shall not
apply to litigation between Franchisor and Franchisee wherein Franchisee's use of the Marks is disputed or challenged by Franchisor. This indemnification shall not apply to any separate legal fees or costs incurred by Franchisee in seeking independent counsel separate from the counsel representing Franchisor and Franchisee in the event of litigation disputing Franchisor and Franchisee's use of the Marks.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a franchisee has several obligations regarding the brand's proprietary marks. The franchisee's right to use the marks is derived solely from the franchise agreement, is non-exclusive, and is limited to conducting business in compliance with the agreement and the franchisor's standards. Any unauthorized use of the marks constitutes a breach of the agreement and an infringement of the franchisor's rights. The franchisee cannot acquire any ownership interest in the marks through their use, and all goodwill generated by such use inures to the benefit of the franchisor.
During the term of the agreement and after its termination or expiration, the franchisee is prohibited from contesting the validity or ownership of the marks or assisting others in doing so. The franchisee must not use any mark or portion thereof as part of their business entity name or in connection with unauthorized products or services. They are required to give notices of trademark and service mark registrations as specified by the franchisor and obtain any necessary fictitious or assumed name registrations. Additionally, franchisees cannot register or seek to register any of the marks, or confusingly similar trademarks or service marks, with any trademark office.
Upon termination or expiration of the franchise agreement, the franchisee must immediately cease using the trade secrets, confidential information, the system, and the marks, including all related signs, slogans, logos, and advertising materials. They must also take necessary actions to cancel or assign to the franchisor any assumed name registrations containing the Monicals Pizza name or any other mark. The franchisee is required to furnish the franchisor with evidence of compliance with these obligations within 30 days after termination or expiration of the agreement.