Will All County reimburse an All County franchisee for costs incurred defending a claim related to the All County trademark?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
We will indemnify you against, and reimburse you for, all damages for which you are held liable in any proceeding arising out of your authorized use of any Mark under the Franchise Agreement and, except as provided in the Franchise Agreement, for all costs you reasonably incur in defending any claim brought against you or any proceeding in which you are named as a party, if you have timely notified us of the claim or proceeding and you and your owners are in compliance with the Franchise Agreement and all other agreements entered into with us and our affiliate(s). In our or our affiliate(s)' sole business judgment, we will be entitled to prosecute, defend or settle any proceeding arising out of your use of any Mark, and, if we or our affiliate(s) decide to prosecute, defend or settle any matter, we will have no obligation to indemnify or reimburse you for any fees or disbursements of counsel you retain.
Source: Item 13 — Trademarks (FDD pages 28–30)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County will indemnify and reimburse a franchisee for damages they are held liable for in a proceeding arising from the franchisee's authorized use of the All County trademark. All County will also cover costs reasonably incurred in defending a claim brought against the franchisee, or in any proceeding where the franchisee is named as a party. However, this is contingent upon the franchisee notifying All County of the claim or proceeding in a timely manner and being in compliance with the Franchise Agreement and all other agreements with All County and its affiliates.
All County retains the right to control the defense or settlement of any legal proceeding related to the trademark. If All County decides to handle the legal matters, they are not obligated to reimburse the franchisee for attorney fees the franchisee may have incurred by hiring their own counsel.
This arrangement is fairly typical in franchising. The franchisor owns the trademarks and has a vested interest in protecting them. By retaining control over trademark-related litigation, All County can ensure a consistent legal strategy and minimize potential damage to the brand. However, it also means the franchisee relinquishes control over their own defense in such matters, and must rely on All County's judgment.