What action must an All County franchisee take if there is a challenge to All County's ownership of the Marks?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.8. Infringement and Claims of Marks. You shall promptly notify us of any suspected unauthorized use of the Marks, any challenge to the validity of the Marks, or any challenge to our ownership of, our right to use and to license others to use, or your right to use, the Marks. You acknowledge that we have the sole right to direct and control any administrative proceeding or litigation involving the Marks, including any settlement thereof. We have the right, but not the obligation, to take action against uses by others that may constitute infringement of the Marks. We shall defend you against any third party claim, suit, or demand arising out of your use of the Marks. If we, in our sole business judgment, determine that you have used the Marks in accordance with this Agreement, the cost of such defense, including the cost of any judgment or settlement, shall be borne by us. If we, in our sole business judgment, determine that you have not used the Marks in accordance with this Agreement, the cost of such defense, including the cost of any judgment or settlement, shall be borne by you. In the event of any litigation relating to your use of the Marks, you shall execute any and all documents and do such acts as may, in our opinion, be necessary to carry out such defense or prosecution, including, but not limited to, becoming a nominal party to any legal action. Except to the extent that such litigation is the result of your use of the Marks in a manner inconsistent with the terms of this Agreement, we agree to reimburse you for your out-of-pocket costs in doing such acts;
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if there is any challenge to the validity of the Marks, or any challenge to All County's ownership of, right to use and to license others to use, or the franchisee's right to use, the Marks, the franchisee must promptly notify All County. The franchisee acknowledges that All County has the sole right to direct and control any administrative proceeding or litigation involving the Marks, including any settlement.
All County has the right, but not the obligation, to take action against uses by others that may constitute infringement of the Marks. All County will defend the franchisee against any third party claim, suit, or demand arising out of the franchisee's use of the Marks if All County determines that the franchisee has used the Marks in accordance with the Franchise Agreement. The cost of such defense, including the cost of any judgment or settlement, will be borne by All County. However, if All County determines that the franchisee has not used the Marks in accordance with the Franchise Agreement, the cost of the defense, including the cost of any judgment or settlement, will be borne by the franchisee.
In the event of any litigation relating to the franchisee's use of the Marks, the franchisee must execute any and all documents and do such acts as may, in All County's opinion, be necessary to carry out such defense or prosecution, including becoming a nominal party to any legal action. Except to the extent that such litigation is the result of the franchisee's use of the Marks in a manner inconsistent with the terms of the Franchise Agreement, All County will reimburse the franchisee for their out-of-pocket costs in doing such acts. This means that franchisees must cooperate fully with All County in any legal matters related to the trademarks and service marks, and they may be required to participate in legal proceedings.