Is Monicals Pizza responsible for covering separate legal fees incurred by the franchisee when seeking independent counsel in litigation disputing the use of the Marks?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Monicals Pizza franchisees are responsible for their own legal fees should they seek independent counsel in litigation disputing the use of the Marks. The FDD outlines the franchisee's rights to use Monicals Pizza's marks, stating that the right is derived solely from the agreement and any unauthorized use is a breach of the agreement.
Specifically, the agreement states that the franchisee shall not 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. This clause suggests that Monicals Pizza aims to protect its trademarks and prevent any challenges to its ownership.
The FDD does not explicitly state that Monicals Pizza will cover a franchisee's legal fees if the franchisee seeks independent counsel in litigation disputing the use of the Marks. In fact, the document states that the franchisee is responsible for adhering to the agreement and protecting Monicals Pizza's interests in its trademarks. Therefore, it is unlikely that Monicals Pizza would cover these costs. It would be prudent for a prospective franchisee to seek clarification from Monicals Pizza regarding responsibility for legal fees in such a scenario.