Who has the exclusive right to control litigation concerning Red Wagon Club trademarks?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or of any person's claim of any rights in any Mark, and you may not communicate with any person other than us and our and our affiliates' attorneys, regarding any infringement, challenge or claim. We and/or RWC IP may take the action we deem appropriate and exclusively control any litigation or proceeding from the infringement, challenge or claim or otherwise concerning any Mark. You must sign the documents and take the actions that, in the opinion of our attorneys, are necessary or advisable to protect and maintain our interests in the Marks. We will reimburse you for all damages and expenses that you incur in responding to any trademark infringement proceeding disputing your use of any Marks, if you have notified us immediately of the proceeding, and complied with our directions in responding to it. You must not contest, or assist any other person in contesting, the validity of our and RWC IP's ownership of the Marks. Your use of the Marks and any goodwill established by that use are exclusively for our and RWC IP's benefit.
Under the Franchise Agreement, we must indemnify you against, and reimburse you for, all damages for which you are held liable in any proceeding in which your use of any Mark in compliance with the Franchise Agreement is held to constitute trademark infringement, and for all reasonable costs you incur in the defense of any claim brought against you or in any proceeding in which you are named as a party, only if you have timely notified us of the claim or proceeding and comply with our directions in responding to the proceeding. At our option, we and/or RWC IP may defend and control the defense of any proceeding from your use of any Mark under the Franchise Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 34–35)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, Red Wagon Club and/or RWC IP have the exclusive right to control any litigation or proceedings concerning their trademarks. As a franchisee, you are required to notify Red Wagon Club immediately of any potential infringement or challenges to the use of any mark. You are not allowed to communicate with anyone other than Red Wagon Club and their attorneys regarding any infringement, challenge, or claim.
Red Wagon Club and/or RWC IP will decide what action is appropriate and will exclusively control any litigation or proceeding arising from the infringement, challenge, or claim. Franchisees must sign documents and take actions deemed necessary by Red Wagon Club's attorneys to protect the interests in the marks.
If a trademark infringement proceeding arises from a franchisee's use of the marks, and the franchisee has notified Red Wagon Club immediately and complied with their directions, Red Wagon Club will reimburse the franchisee for all damages and expenses incurred in responding to the proceeding. However, franchisees are prohibited from contesting the validity of Red Wagon Club's or RWC IP's ownership of the marks. The Franchise Agreement states that Red Wagon Club must indemnify the franchisee against, and reimburse them for, all damages for which they are held liable in any proceeding in which their use of any Mark in compliance with the Franchise Agreement is held to constitute trademark infringement, and for all reasonable costs they incur in the defense of any claim brought against them or in any proceeding in which they are named as a party, only if they have timely notified Red Wagon Club of the claim or proceeding and comply with their directions in responding to the proceeding. At their option, Red Wagon Club and/or RWC IP may defend and control the defense of any proceeding from the franchisee's use of any Mark under the Franchise Agreement.