Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 51

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 51
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intellectual property from infringement, misappropriation, or dilution. We have registered certain trademarks and service marks and have
other trademark and service mark registration applications pending in the U.S. and foreign jurisdictions. However, not all trademarks
or service marks that we currently use have been registered in all of the countries in which we may do business in the future, and they
may never be registered in all of those countries. Although we monitor trademark portfolios internally and impose an obligation on franchisees
to notify us upon learning of potential infringement, there can be no assurance that we will be able to adequately maintain, enforce and
protect our trademarks or other intellectual property rights.

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We are not aware of any challenges
to our right to use any of our brand names or trademarks. We are vigilant in enforcing our intellectual property and protecting our brands.
Unauthorized uses or other infringement of our trademarks or service marks, including ones that are currently unknown to us, could diminish
the value of our brands and may adversely affect our business. Effective intellectual property protection may not be available in every
market in which we have franchised or intend to franchise. Failure to adequately protect our intellectual property rights could damage
our brands and impair our ability to compete effectively. Even where we have effectively secured statutory protection for our trademarks
and other intellectual property, our competitors may misappropriate our intellectual property. Defending or enforcing our trademark rights,
branding practices and other intellectual property, and seeking an injunction and/or compensation for misappropriation of confidential
information, could result in the expenditure of significant resources and divert the attention of management, which in turn may materially
and adversely affect our business and operating results.

Although we monitor and restrict
our franchisees’ activities through our franchise agreements, franchisees may refer to our brands improperly in writings or conversations,
resulting in the dilution of our intellectual property. Franchisee noncompliance with the terms and conditions of our franchise agreements
and our brand standards may reduce the overall goodwill of our brands, whether through the failure to meet the FTC guidelines or applicable
state laws, or through the participation in improper or objectionable business practices. Moreover, unauthorized third parties may use
our intellectual property to trade on the goodwill of our brand, resulting in consumer confusion or dilution. Any reduction of our brand’s
goodwill, consumer confusion, or dilution is likely to impact sales, and could materially and adversely impact our business and operating
results.

We are subject to certain
risks related to litigation filed by or