What happens if Southern Steer's right to use the Mark(s) is challenged?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If Our right to use the Mark(s) is challenged, You may have to change to an alternative mark, which may increase Your expenses. There are no currently effective material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator in any state or any court, no pending infringement or opposition proceeding, and no pending material litigation involving the Mark(s). To the best of Our knowledge, there are no infringing uses which could materially affect Your use of the Mark(s).
You must notify Us immediately if You learn about an infringer or of a challenge to Your use of the Mark(s). We are not required to take affirmative action when notified of such infringement and We are not contractually obligated by the Franchise Agreement to protect You against claims of infringement or unfair competition involving the Mark(s), but it is Our policy to do so, when, in the opinion of Our counsel, Your rights require protection. We will pay costs, including attorneys' fees and court costs, associated with any litigation that We elect to bring or defend to protect Your use of the licensed Mark(s). We do not indemnify You for expenses or damages incurred by You. You are obligated to fully cooperate with Us in any litigation We bring or defend for Your benefit. We will control any administrative proceeding or litigation involving the Mark(s). However, if anyone establishes to Our satisfaction that its rights are, for any legal reason, superior to the rights of Southern Steer Butcher, LLC as to the Mark(s), then You must use the variances or other service marks, trademarks or trade names We require.
Source: Item 13 — ITEM. 13 TRADEMARKS (FDD pages 38–39)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if the company's right to use its trademarks is challenged, franchisees may be required to switch to an alternative mark. This change could potentially increase the franchisee's expenses. Southern Steer states that there are no current material determinations from the USPTO, the Trademark Trial and Appeal Board, any state trademark administrator, or any court, and there are no pending infringement or opposition proceedings, or material litigation involving the trademarks. To the best of Southern Steer's knowledge, there are no infringing uses that could materially affect a franchisee's use of the trademarks.
Franchisees are required to notify Southern Steer immediately if they become aware of any infringement or challenges to the use of the trademarks. While Southern Steer is not obligated by the Franchise Agreement to take action or protect franchisees against claims of infringement or unfair competition, it is the company's policy to do so when its counsel believes protection is necessary. Southern Steer will cover the costs of litigation, including attorney's fees and court costs, if it chooses to bring or defend a lawsuit to protect the use of the licensed trademarks. However, Southern Steer does not indemnify franchisees for expenses or damages they incur.
Franchisees are obligated to cooperate fully with Southern Steer in any litigation for their benefit, and Southern Steer will control any administrative proceeding or litigation involving the trademarks. However, if another party establishes rights superior to those of Southern Steer Butcher, LLC (the affiliate owning the trademarks), franchisees must use alternative marks, trademarks, or trade names as required by Southern Steer. This highlights the importance of trademark protection and the potential impact on franchisees if trademark rights are disputed. While Southern Steer intends to protect its trademarks, the ultimate responsibility for costs and damages falls on the franchisee.