What happens if a third party infringes 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 control over any trademark litigation related to its Marks. If a third party infringes upon Pearce Bespoke's Marks, Pearce Bespoke will decide what action to take. While Pearce Bespoke is not obligated to protect franchisees from infringement claims arising from their use of the Marks, franchisees must promptly notify Pearce Bespoke of any infringement or unauthorized use and cooperate with any action Pearce Bespoke decides to take. Pearce Bespoke will cover the costs and expenses of litigation, including attorney's fees, specifically related to the Marks. However, Pearce Bespoke is not required to take any action even if notified of such infringements.
This means that as a Pearce Bespoke franchisee, you are responsible for alerting Pearce Bespoke to any potential trademark infringements you observe. While Pearce Bespoke will handle and pay for any litigation they deem necessary, they are not obligated to take action. This is a fairly typical arrangement in franchising, where the franchisor maintains control over the brand's trademarks but places the onus on franchisees to be vigilant about potential infringements in their territory.
Furthermore, if a party claims superior rights to the Marks, and Pearce Bespoke confirms that claim, the franchisee must immediately make changes and substitutions to the Marks at their own expense as required by Pearce Bespoke. This highlights a potential risk for franchisees, as they may incur costs to change their signage and marketing materials if trademark issues arise. Franchisees should be aware of this potential expense and factor it into their business planning.