Who has the exclusive right to control litigation involving alleged infringement of Mrcool's Licensed Marks?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to provide us with written notice of any claims that you may become aware of respecting the Licensed Marks including your use of the Licensed Marks and/or any claim associated with a third party's use of a trademark that is identical or confusingly similar to the Licensed Marks. We maintain the exclusive discretion to take any and all actions or, to refrain from any action, that we believe to be appropriate in response to any trademark infringement, challenge or claim. As between us, we possess the sole right to exclusively control any and all litigation, legal proceedings, administrative proceedings and/or settlement(s) involving any actual or alleged infringement, challenge or claim relating to the Licensed Marks. You must sign all documents, instruments and agreements and undertake the actions that we, with the advice of our legal counsel, determine to be necessary or advisable for the protection or maintenance of our interests in the Licensed Marks in any legal proceeding, administrative proceeding and/or as may be otherwise determined by us. As to the foregoing, we will reimburse you for the reasonable out-of-pocket administrative expenses that you incur and pay in complying with our written instructions.
Source: Item 13 — TRADEMARKS (FDD pages 37–41)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool maintains the exclusive right to control litigation involving any actual or alleged infringement, challenge, or claim relating to its Licensed Marks. This means that Mrcool, not the franchisee, decides how to handle any legal matters related to the trademarks.
For a prospective Mrcool franchisee, this is significant because they are required to notify Mrcool of any potential trademark issues they become aware of. However, the franchisee does not have the authority to independently pursue legal action to protect the marks. Mrcool has sole discretion to decide whether or not to take action.
The franchisee is obligated to sign documents and take actions deemed necessary by Mrcool and its legal counsel to protect the Licensed Marks. In return, Mrcool will reimburse the franchisee for reasonable out-of-pocket administrative expenses incurred while following Mrcool's written instructions. This arrangement protects Mrcool's brand identity and ensures consistent legal strategy, while also providing some financial protection to the franchisee for required actions.