If a Southern Steer franchisee learns about an infringer, what are they required to do?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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, franchisees are required to notify Southern Steer immediately if they become aware of anyone infringing on their trademarks or challenging their use of the marks. While Southern Steer is not obligated to take action upon notification, it is their policy to do so if their counsel believes protection is warranted.
Southern Steer retains control over any administrative proceedings or litigation related to the trademarks. Franchisees are obligated to fully cooperate with Southern Steer in any litigation initiated or defended for their benefit. However, if another party demonstrates superior rights to the marks, franchisees must use alternative marks as directed by Southern Steer.
Southern Steer will cover the costs, including attorney's fees and court costs, associated with litigation they choose to pursue or defend to protect the use of their licensed marks. However, Southern Steer does not indemnify franchisees for expenses or damages they incur. This means that while Southern Steer may take legal action to protect the brand, the franchisee is responsible for any direct losses they experience due to infringement or challenges to trademark use.
This arrangement is fairly typical in franchising, where the franchisor owns and protects the brand, but franchisees bear some risk related to potential trademark issues in their specific territory. Prospective Southern Steer franchisees should understand that while the franchisor will likely act to defend the brand, they will not be financially compensated for losses resulting from trademark disputes.