Under what condition will Southern Steer pay costs associated with litigation to protect the Mark(s)?
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, Southern Steer is not contractually obligated to protect franchisees against claims of infringement involving the Mark(s). However, it is Southern Steer's policy to do so when their counsel believes the franchisee's rights require protection.
Southern Steer will cover costs, including attorney's fees and court costs, for any litigation they choose to bring or defend to protect the franchisee's use of the licensed Mark(s). However, Southern Steer does not provide indemnity for expenses or damages incurred by the franchisee. The franchisee is obligated to fully cooperate with Southern Steer in any litigation they bring or defend for the franchisee's benefit, and Southern Steer will control any administrative proceeding or litigation involving the Mark(s).
However, if anyone establishes rights superior to those of Southern Steer Butcher, LLC (the affiliate owning the Mark(s)), the franchisee must use alternative marks, trademarks, or trade names as required by Southern Steer. This means that while Southern Steer may cover litigation costs, the franchisee ultimately bears the risk of needing to switch branding if a superior claim arises.