Will Mrcool reimburse a franchisee for out-of-pocket administrative expenses incurred while complying with written instructions related to protecting the 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 will reimburse a franchisee for reasonable out-of-pocket administrative expenses. This reimbursement is specifically for expenses incurred and paid by the franchisee while adhering to Mrcool's written instructions regarding the protection or maintenance of Mrcool's interests in the Licensed Marks.
This means that if a franchisee is asked to take certain administrative actions in writing to protect Mrcool's trademarks, such as providing documentation or executing agreements, Mrcool will cover the direct costs of these actions. This is a benefit to the franchisee, as it reduces the financial burden of protecting the brand's trademarks.
However, it is important to note that Mrcool has the exclusive right to control any legal proceedings related to the Licensed Marks. The reimbursement is limited to reasonable out-of-pocket administrative expenses incurred with Mrcool's written instructions. This implies that franchisees need to obtain clear, written instructions from Mrcool to ensure that expenses will be covered. It also suggests that legal fees for attorneys that the franchisee retains are not subject to reimbursement if Mrcool defends the claim.