Does Spray Net have the right to participate in litigation involving a franchisee and the Spray Net Proprietary Marks?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us, in writing, if you become aware of any unauthorized use of our Proprietary Mark or other proprietary information, and you must permit us to participate in any litigation involving you and our Proprietary Marks. We will take the action we think appropriate. While we are not required to defend you against a claim against your use of our Proprietary Marks, we will reimburse you for all of your expenses reasonably incurred in any legal proceeding disputing your authorized use of any Proprietary Mark, in compliance with the Franchise Agreement and our written directives, so long as you notify us of the proceeding in a timely manner and you have complied with our directions with regard to the proceeding. We have the right to control the defense and settlement of any proceeding. We will not reimburse you for your expenses and legal fees for separate, independent legal counsel and for expenses in removing signage or discontinuing your use of any Proprietary Marks. We will not reimburse you for disputes where we challenge your use of a Proprietary Marks.
Source: Item 13 — TRADEMARKS (FDD pages 52–53)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees must notify Spray Net in writing if they become aware of any unauthorized use of Spray Net's Proprietary Marks or other proprietary information. Furthermore, franchisees must allow Spray Net to participate in any litigation involving the franchisee and Spray Net's Proprietary Marks, and Spray Net will decide what action it deems appropriate.
While Spray Net is not required to defend a franchisee against claims regarding the use of Proprietary Marks, Spray Net will reimburse the franchisee for all expenses reasonably incurred in any legal proceeding disputing the authorized use of any Proprietary Mark. This is contingent upon the franchisee notifying Spray Net of the proceeding in a timely manner and complying with Spray Net's directions regarding the proceeding, in compliance with the Franchise Agreement and Spray Net's written directives. Spray Net retains the right to control the defense and settlement of any proceeding.
However, Spray Net will not reimburse franchisees for the expenses and legal fees for separate, independent legal counsel, expenses in removing signage, or discontinuing the use of any Proprietary Marks. Additionally, Spray Net will not provide reimbursement for disputes where Spray Net challenges a franchisee's use of Proprietary Marks. This means that while Spray Net offers some support and potential reimbursement for legal proceedings related to the use of its trademarks, there are specific limitations and conditions that franchisees must adhere to.