Who controls trademark litigation related to Pearce Bespoke's marks?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke is not required to protect you against infringement or unfair competition claims arising out of your use of the Marks, or to participate in your defense or indemnify you. Pearce Bespoke reserves the right to control any trademark litigation and will take the action Pearce Bespoke believes appropriate if a third party infringes Pearce Bespoke's Marks. You must notify Pearce Bespoke promptly if you become aware of any infringement or unauthorized use of the Marks and cooperate with any action that Pearce Bespoke takes. Pearce Bespoke will pay the cost and expense of all litigation Pearce Bespoke incurs, including attorneys' fees, specifically related to the Marks. However, Pearce Bespoke is not required to take affirmative action when notified of these uses or claims. If any party claims that its rights to use any of the Marks are superior and Pearce Bespoke confirms that claim, you must, at your expense, immediately make the changes and use the substitutions to the Marks as Pearce Bespoke requires.
Source: Item 13 — TRADEMARKS (FDD page 29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke retains the right to control any trademark litigation pertaining to its marks. This means that if a third party infringes upon Pearce Bespoke's trademarks, Pearce Bespoke, not the franchisee, will decide on the appropriate course of action.
This control extends to the financial responsibility for such litigation. Pearce Bespoke will cover the costs and expenses, including attorney's fees, specifically related to the marks. However, Pearce Bespoke is not obligated to take any action, even if notified of potential infringements or claims.
For a prospective franchisee, this arrangement has both benefits and potential drawbacks. On the one hand, the franchisee is not responsible for the costs of trademark litigation. On the other hand, the franchisee has no control over how Pearce Bespoke chooses to handle infringement issues, and Pearce Bespoke is not required to take any action at all. Franchisees are required to promptly notify Pearce Bespoke if they become aware of any infringement or unauthorized use of the Marks and cooperate with any action that Pearce Bespoke takes.
Furthermore, if a third party asserts superior rights to the marks, and Pearce Bespoke confirms that claim, franchisees must immediately make any changes or substitutions to the marks that Pearce Bespoke requires, and do so at their own expense. This could involve rebranding or altering marketing materials, potentially incurring additional costs for the franchisee.