Who has the right to control litigation related to All County trademark infringements?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark we license to you under the Franchise Agreement, or of any claim by any person of any rights in any Mark, and we have sole business judgment to take the actions we deem appropriate and the right to control exclusively any litigation, PTO proceeding or any other administrative proceeding arising out of any infringement, challenge or claim or otherwise relating to any Mark. You must sign any and all instruments and documents, render assistance and do any acts as may be necessary or advisable to protect and maintain our interests in any litigation or PTO proceeding or other proceeding or otherwise to protect and maintain our interests in our Marks.
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
Source: Item 13 — Trademarks (FDD pages 28–30)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County retains sole business judgment and the exclusive right to control any litigation, PTO (Patent and Trademark Office) proceeding, or any other administrative proceeding arising out of any infringement, challenge, or claim relating to any Mark. This means that if there is an issue regarding the trademark, All County, not the franchisee, will decide how to handle the legal aspects.
This is a significant point for prospective franchisees. While franchisees are required to notify All County immediately of any potential trademark infringement or challenges to the use of the licensed marks, they do not have the authority to independently pursue legal action to protect the brand. All County maintains control over these matters. Franchisees are obligated to sign documents and provide assistance as needed to protect All County's interests in any litigation or PTO proceeding.
Furthermore, All County will indemnify franchisees against damages they are held liable for in proceedings arising from authorized use of any Mark, provided the franchisee has notified All County in a timely manner and is in compliance with all agreements. However, All County has no obligation to indemnify or reimburse franchisees for counsel fees if All County decides to handle the legal proceedings themselves. This arrangement is fairly typical in franchising, as franchisors need to protect their brand standards and reputation consistently across all locations.
In summary, while franchisees have a responsibility to report any potential trademark issues, All County maintains full control over the legal strategy and proceedings related to its trademarks. Franchisees are expected to cooperate with All County in these matters, and may be eligible for indemnification under certain conditions.