What action will All Dogs Unleashed take if notified of a claim regarding the trademarks?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us of any suspected unauthorized use of, or any challenge to the validity of the Marks or Copyrighted Works (defined in Item 14 below), or any challenge to our ownership of, or license to use and to license others to use, or your right to use, the Marks or Copyrighted Works. We are not required to take affirmative action when notified of a claim, or to participate in your defense or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving any of the Marks, or if the proceeding is resolved unfavorably to you, but will take whatever action we determine to be appropriate under the circumstances. We have the right to direct and control any administrative proceeding or litigation, or other adjudicative proceeding involving the Marks or Copyrighted Works, including any settlement of the proceeding. In the event of a lawsuit relating to your use of the Marks or Copyrighted Works, you must sign all documents that we require and do all things that we consider necessary to carry out the defense or prosecution, which may include becoming a nominal party to the action. Unless the action is the result of your use of the Marks or Copyright Works in a manner inconsistent with the terms of the Franchise Agreement, we will reimburse you for your associated costs.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, franchisees must promptly inform All Dogs Unleashed of any suspected unauthorized use or challenges to the validity of the trademarks or copyrighted works. This also includes any challenges to All Dogs Unleashed's ownership, license to use, or the franchisee's right to use the trademarks or copyrighted works. However, All Dogs Unleashed is not obligated to take any specific action upon receiving such notification.
All Dogs Unleashed will decide what action, if any, it deems appropriate under the circumstances. This means that while franchisees are required to report any potential trademark issues, All Dogs Unleashed retains full discretion over how to respond. All Dogs Unleashed has the right to direct and control any administrative proceeding, litigation, or other adjudicative proceeding involving the Marks or Copyrighted Works, including any settlement of the proceeding.
In the event of a lawsuit related to a franchisee's use of the trademarks or copyrighted works, the franchisee must sign all necessary documents and take actions deemed necessary by All Dogs Unleashed for the defense or prosecution of the case, potentially including becoming a nominal party to the action. Unless the action results from the franchisee's unauthorized use of the trademarks or copyrighted works, All Dogs Unleashed will reimburse the franchisee for associated costs. This provision offers some financial protection to franchisees in cases where they are using the trademarks as authorized but still face legal challenges.
This arrangement is fairly typical in franchising, where the franchisor maintains control over its brand's trademarks. It is important for a prospective All Dogs Unleashed franchisee to understand that while they have a responsibility to report trademark issues, the franchisor has the ultimate authority in deciding how to address them. Franchisees should clarify with All Dogs Unleashed what types of actions they might expect the franchisor to take in various scenarios and what their own responsibilities and potential liabilities would be.