What is the deadline for a Petro Stopping Center franchisee to provide written notice to Petro Stopping Center of any claim of infringement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide written notice to us of any such claim within 10 days of your receipt of such notice and you must tender the defense of the claim to us.
We will have the right to defend any such claim and if we do so, we will have no obligation to indemnify or reimburse you for any fees or disbursements of any attorney retained by you.
If we elect to defend the claim, we will have the right to manage the defense of the claim including the right to
compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, a franchisee must provide written notice to Petro Stopping Center of any claim of trademark or copyright infringement within 10 days of receiving notice of the claim. This requirement is part of the indemnification agreement, where Petro Stopping Center agrees to protect the franchisee against damages from authorized use of their trademarks or copyrights. However, this protection is contingent on the franchisee adhering to the terms of the franchise agreement, including timely notification of any claims.
This notification deadline is crucial because it allows Petro Stopping Center to take control of the defense against the infringement claim. If Petro Stopping Center chooses to defend the claim, they have the right to manage the defense, including settling or appealing the claim. In this scenario, Petro Stopping Center will not reimburse the franchisee for any attorney fees if the franchisee retains their own counsel.
Failing to notify Petro Stopping Center within the 10-day period could result in the franchisee losing the right to be indemnified, meaning they would be responsible for all damages and legal costs associated with the infringement claim. This underscores the importance of franchisees understanding and adhering to the notification requirements outlined in the franchise agreement to ensure they can benefit from the franchisor's indemnification.