What is an All States M.E.D. franchisee required to do to assist the franchisor in obtaining intellectual property rights?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
As Franchisor may reasonably request, Franchisee shall take all actions to assist Franchisor's efforts to obtain or maintain intellectual property rights in any item or process related to the System, whether developed by Franchisee or not.
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, franchisees are obligated to assist All States M.E.D. in securing and maintaining its intellectual property rights related to the All States M.E.D. system. This encompasses any item or process linked to the All States M.E.D. system, irrespective of whether the franchisee developed it.
All ideas, concepts, techniques, or materials concerning the All States M.E.D. system, or developed using trade secrets or confidential information, are deemed the sole property of All States M.E.D.. This applies whether or not such developments are protectable intellectual property and regardless of who created them (franchisee, owners, or employees). Franchisees must promptly disclose such developments to All States M.E.D. and agree to assign all rights to any intellectual property developed to All States M.E.D.
In practice, this means that if a franchisee innovates or improves any aspect of the All States M.E.D. system, they must transfer ownership of that innovation to All States M.E.D. and take any requested actions to help All States M.E.D. protect it. This is a fairly standard clause in franchise agreements, as franchisors need to maintain control over their brand's intellectual property. Franchisees do not receive additional compensation for these developments, as the FDD states that no compensation is due to the franchisee or its owners/employees.