What are the consequences for an All States M.E.D. franchisee who misuses the brand's Marks?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- (n) misuses or makes an unauthorized use of any of the Marks or commits any other act which can reasonably be expected to impair the goodwill associated with any of the Marks;
(a) immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
- (b) cease to use the Trade Secrets or other Confidential Information, the System and the Marks, including, without limitation, all slogans, symbols, logos, advertising materials, stationery, forms, and any other items which display or are associated with the Marks;
- (c) take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city, or county authorities which contains the name "All States M.E.D." or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
- (d) pay all sums owing to Franchisor and any Affiliate. In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs, and expenses, including reasonable attorneys' fees, with respect to litigation, arbitration, appellate, or bankruptcy proceedings, unpaid Royalty Fees, loss of future Royalty Fee payments incurred by Franchisor as a result of any early termination of this Agreement, and any other amounts due to Franchisor or any Affiliate;
- (e) pay to Franchisor all costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the Franchise in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement;
- (f) immediately return to Franchisor the Operations Manual, Trade Secrets, and all other Confidential Information, including records, files, instructions, brochures, agreements, disclosure statements, and any and all other materials provided by Franchisor to Franchisee relating to the operation of the Franchised Business (all of which are acknowledged to be Franchisor's property);
- (g) assign all telephone listings and numbers for the Franchised Business to Franchisor and shall notify the telephone company and all listing agencies of the termination or expiration of Franchisee's right to use any telephone numbers or facsimile numbers associated with the Marks in any regular, classified or other telephone directory listing and shall authorize transfer of same to or at the direction of Franchisor; and
- (h) comply with all other applicable provisions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, a franchisee who misuses or makes unauthorized use of the brand's Marks, or commits any act that could reasonably impair the goodwill associated with those Marks, may face termination of their franchise agreement.
Upon termination, the franchisee must immediately cease operating the All States M.E.D. business and cannot represent themselves as a current or former franchisee. They must also stop using the Trade Secrets or other Confidential Information, the System, and the Marks, including all related slogans, symbols, logos, and advertising materials. The franchisee is required to cancel or assign to All States M.E.D. any assumed name registrations containing the name "All States M.E.D." or any other Mark, providing evidence of compliance within 30 days of termination or expiration.
Financially, the franchisee is responsible for paying all sums owed to All States M.E.D. and its affiliates, including damages, costs, expenses, reasonable attorneys' fees related to legal proceedings, unpaid Royalty Fees, and loss of future Royalty Fee payments resulting from the early termination. They must also cover all costs and expenses incurred by All States M.E.D. in obtaining injunctive or other relief to enforce the agreement. Additionally, the franchisee must return the Operations Manual, Trade Secrets, and all other Confidential Information to All States M.E.D.
Finally, the franchisee must assign all telephone listings and numbers for the Franchised Business to All States M.E.D. and notify the telephone company and listing agencies of the termination of their right to use any telephone numbers or facsimile numbers associated with the Marks. They must also comply with all other applicable provisions of the Franchise Agreement.