If All County modifies or discontinues a trademark, is All County obligated to reimburse the franchisee for expenditures to promote a substitute trademark?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
If it becomes advisable at any time in our business judgment for us and/or you to modify or discontinue the use of any Marks and/or use one or more additional or substitute trademarks or
service marks, you are obligated to comply with our directions within a reasonable time after receiving notice from us. We are not obligated to reimburse you for any loss of revenue attributed to any modified or discontinued Marks or for any expenditures you make to promote a modified or substitute trademark or service mark.
Source: Item 13 — Trademarks (FDD pages 28–30)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County is not obligated to reimburse franchisees for expenses incurred when promoting a modified or substitute trademark. The FDD states that if All County deems it advisable to modify or discontinue any trademarks, franchisees are obligated to comply with All County's directions within a reasonable time frame after receiving notice.
This means that if All County decides to change its branding or replace a trademark, franchisees must implement those changes. However, All County will not cover any lost revenue attributed to the change or the costs associated with promoting the new trademark. This could create a financial burden for franchisees who must invest in new marketing materials and campaigns to reflect the updated branding.
It is important to note that All County will indemnify and reimburse franchisees for damages they are held liable for in proceedings arising from the authorized use of a mark, and for costs reasonably incurred in defending claims, provided the franchisee has notified All County in a timely manner and is in compliance with all agreements. However, All County has the right to control any litigation and is not obligated to cover the franchisee's legal fees if All County decides to handle the matter itself.