Does the Zoomin Groomin Franchise Agreement require the franchisor to participate in the franchisee's defense in a trademark proceeding?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
If you learn of any claim against you for alleged infringement, unfair competition, orsimilar claims about the Marks, you must promptly notify us. We are not required to take affirmative action when notified of these uses or claims. We have the sole right to control any administrative proceedings or litigation involving a trademark licensed by us to you. The Franchise Agreement does not require us to participate in your defense or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a trademark licensed by us to you or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 34–36)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Franchise Agreement does not obligate Zoomin Groomin to participate in a franchisee's defense in a trademark proceeding. Specifically, if a franchisee faces a claim of infringement, unfair competition, or similar issues related to the trademarks, the franchisee must promptly notify Zoomin Groomin. However, Zoomin Groomin is not required to take any action upon receiving such notification.
Zoomin Groomin retains the sole right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee. Furthermore, the Franchise Agreement explicitly states that Zoomin Groomin is not required to participate in the franchisee's defense or provide indemnification for expenses or damages if the franchisee is involved in a trademark-related administrative or judicial proceeding, even if the outcome is unfavorable to the franchisee.
This arrangement places the responsibility and cost of defending against trademark claims solely on the franchisee. While Zoomin Groomin maintains control over the legal proceedings, the franchisee bears the financial burden of any defense or damages. This is a significant risk for prospective franchisees, as trademark disputes can be costly and time-consuming. It is important for potential franchisees to understand this aspect of the agreement and consider obtaining their own legal counsel to assess the potential risks and liabilities associated with trademark usage.