When must an All States M.E.D. franchisee notify the franchisor in writing about claims regarding the Marks?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
ist any other person in contesting the validity or ownership of the Marks.
You must immediately notify us in writing when you learn about any claim of infringement, unfair competition, or similar claims about the Marks. You must not communicate with any person other than us and our counsel regarding any infringements, challenges or claims unless you are legally required to do so. However, you may communicate with your own counsel at your own expense. We are not required to take
affirmative action when notified of these uses or claims. We have the sole right to control any administrative or judicial proceeding involving a trademark licensed by us. The Franchise Agreement does not require us to participate in your defense or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a trademark licensed by us to you or if the proceeding is resolved unfavorable to you.
Source: Item 13 — TRADEMARKS (FDD pages 29–30)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, franchisees must immediately notify All States M.E.D. in writing upon learning of any claim of infringement, unfair competition, or similar claims about the Marks. The franchisee is also restricted from communicating with anyone other than All States M.E.D. and their counsel regarding any infringements, challenges, or claims, unless legally required to do so. However, franchisees are permitted to communicate with their own counsel at their own expense.
All States M.E.D. is not required to take any action when notified of these uses or claims and retains the sole right to control any administrative or judicial proceeding involving a trademark licensed by them. The Franchise Agreement does not require All States M.E.D. to participate in the franchisee's defense or indemnify them for expenses or damages if the franchisee is involved in an administrative or judicial proceeding regarding a licensed trademark, especially if the proceeding is resolved unfavorably for the franchisee.
Furthermore, franchisees must take any actions deemed advisable by All States M.E.D.'s counsel to protect and maintain All States M.E.D.'s interests in any proceeding or to otherwise protect and maintain their interests in the Marks. This requirement places the responsibility on the franchisee to actively support All States M.E.D.'s trademark interests, potentially incurring additional expenses to comply with the franchisor's counsel's directives.