factual

With whom is an All States M.E.D. franchisee prohibited from communicating regarding trademark infringements, besides the Franchisor and Franchisor's counsel?

All_States_M_E_D Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee shall immediately notify Franchisor in writing of any infringement, claim of infringement, unfair competition, or challenge to its use of any of the Marks or claim by any person of any rights in any of the Marks. Franchisee shall not communicate with any person other than Franchisor and Franchisor's counsel in connection with any such infringement, challenge, or claim. However, Franchisee may communicate with Franchisee's counsel at Franchisee's 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. Franchisee shall execute any and all instruments and documents, render such assistance, and do such acts and things as may, in the opinion of Franchisor's counsel, be necessary or advisable to protect and maintain Franchisor's interests in any such litigation or other proceeding or to otherwise protect and maintain Franchisor's interest in the Marks.

Source: Item 23 — RECEIPTS (FDD pages 44–174)

What This Means (2024 FDD)

According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee is required to notify All States M.E.D. immediately in writing of any infringement, claim of infringement, unfair competition, or challenge to the use of any of the Marks.

The FDD specifies that the franchisee is not allowed to communicate with any person other than All States M.E.D. and All States M.E.D.'s counsel regarding any infringement, challenge, or claim related to the trademarks. However, the franchisee is permitted to communicate with their own counsel at their own expense.

This restriction ensures that All States M.E.D. maintains control over its trademarks and the legal strategy for defending them. All States M.E.D. is not required to take any action when notified of these uses or claims and has 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 a trademark-related proceeding.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.