What actions must a Stretch Zone franchisee take to assist Stretch Zone in protecting its copyright interests in litigation?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If there is any claim of copyright infringement, unfair competition or other challenge to your right to use of any Copyright, or if you become aware of any use of, or claims to, any Copyright by persons other than us or our Franchisees, you will promptly (within 7 days) notify us in writing. You will not communicate with anyone except our counsel and us on any infringement, challenge or claim except under judicial process. We have sole discretion as to whether we take any action on any infringement, challenge or claim. We have the sole right to control any litigation or other proceeding arising out of any infringement of, challenge to, or claim to any Copyright. You must sign all documents, render all assistance, and do all acts that our attorneys deem necessary or advisable in order to protect and maintain our interest in any litigation or proceeding involving the Copyright or otherwise to protect and maintain our interests in the Copyright. We indemnify you against and will reimburse you for all damages and costs (including reasonable attorneys' fees and costs) for which you are held liable in any proceeding based on your use of any Copyright in accordance with the Franchise Agreement, provided you: (a) have timely notified us of the claim or proceeding; (b) have otherwise complied with the Franchise Agreement; (c) allow us sole control of the defense and settlement of the action; and (d) cooperate fully with our counsel in the defense of the action.
MODIFICATION
If we deem it advisable to modify or discontinue use of any copyrighted work and/or use one or more new or derivative copyrighted works, you must do so and our sole obligation in this event is to reimburse you for your tangible costs (for example, changing materials) of complying with this obligation.
Source: Item 14 — ITEM -14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 60–62)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if a franchisee becomes aware of any copyright infringement, unfair competition, or challenges to the use of any copyright, they must notify Stretch Zone in writing within 7 days. The franchisee is not allowed to communicate with anyone about the infringement, challenge, or claim, except with Stretch Zone's counsel and Stretch Zone itself, unless required by judicial process. Stretch Zone retains sole discretion over whether to take action on any infringement, challenge, or claim and has the sole right to control any related litigation.
To assist Stretch Zone in protecting its copyright interests, a franchisee must sign all documents, provide all necessary assistance, and perform all actions deemed necessary or advisable by Stretch Zone's attorneys. These actions are intended to protect and maintain Stretch Zone's interest in any litigation or proceeding involving the copyright.
Stretch Zone will indemnify the franchisee against and reimburse them for all damages and costs, including reasonable attorneys' fees, for which the franchisee is held liable in any proceeding based on their use of any copyright, provided the franchisee meets certain conditions. These conditions include timely notification of the claim or proceeding, compliance with the Franchise Agreement, allowing Stretch Zone sole control of the defense and settlement of the action, and full cooperation with Stretch Zone's counsel in the defense of the action.
If Stretch Zone decides to modify or discontinue the use of any copyrighted work or use new copyrighted works, the franchisee must comply. In this case, Stretch Zone's only obligation is to reimburse the franchisee for tangible costs, such as changing materials, incurred as a result of complying with this obligation.