What must a franchisee do if there is an apparent infringement of The Standardx's Copyrighted Materials?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Copyrighted Materials or Confidential Information, or of any person's claim of any rights in any Copyrighted Materials or Confidential Information, and not communicate with any person other than us, our affiliates, and our and their attorneys, and your attorneys, regarding any infringement, challenge, or claim. We and our affiliates may take the action we and they deem appropriate (including no action) and control exclusively any litigation or administrative proceeding arising from any infringement, challenge, or claim or otherwise concerning any Copyrighted Materials or Confidential Information. You must sign any documents and take any other reasonable actions that, in the opinion of our and our affiliates' attorneys, are necessary or advisable to protect and maintain our and our affiliates' interests in any litigation or other proceeding or otherwise to protect and maintain our and our affiliates' interests in the Copyrighted Materials and Confidential Information. We will reimburse your reasonable out-of-pocket costs for taking any requested action.
We need not participate in your defense nor indemnify you for damages and expenses you incur if you are a party to any administrative or judicial proceeding involving any Copyrighted Materials or if the proceeding is resolved unfavorably to you. If it becomes advisable at any time in our sole judgment for you to modify or discontinue using any of the Copyrighted Materials and/or for you to use one or more additional or substitute copyrighted or copyrightable items, you must immediately comply with our directions.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 68–71)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, if a franchisee becomes aware of a potential infringement or challenge to the use of The Standardx's Copyrighted Materials or Confidential Information, they must immediately notify The Standardx. The franchisee is also prohibited from communicating with anyone other than The Standardx, its affiliates, their attorneys, and the franchisee's own attorneys regarding the infringement, challenge, or claim.
The Standardx retains exclusive control over any litigation or administrative proceedings arising from such infringements, challenges, or claims related to the Copyrighted Materials or Confidential Information, and may choose to take action or not. The franchisee is obligated to sign any documents and take reasonable actions deemed necessary by The Standardx's attorneys to protect The Standardx's interests in any legal proceedings or to safeguard the Copyrighted Materials and Confidential Information. The Standardx will cover the franchisee's reasonable out-of-pocket costs for taking these requested actions.
However, The Standardx is not obligated to participate in the franchisee's defense or provide indemnification for damages and expenses if the franchisee is involved in an administrative or judicial proceeding concerning the Copyrighted Materials and the proceeding is resolved unfavorably to the franchisee. Furthermore, if The Standardx determines it is advisable for the franchisee to modify or discontinue using any of the Copyrighted Materials, or to use substitute copyrighted items, the franchisee must immediately comply with The Standardx's directions. This means that franchisees must be vigilant in protecting The Standardx's intellectual property and be prepared to act swiftly and decisively according to The Standardx's instructions in the event of any potential infringement.