Who other than the franchisor and its counsel can an All States M.E.D. franchisee communicate with regarding trademark infringements?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 13 — TRADEMARKS (FDD pages 29–30)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee who learns of any infringement claims, unfair competition, or similar issues regarding the All States M.E.D. trademarks is required to notify All States M.E.D. immediately in writing. The franchisee is generally prohibited from discussing these matters with anyone other than All States M.E.D. and its legal counsel.
However, there is an exception to this rule. An All States M.E.D. franchisee is permitted to communicate with their own legal counsel regarding trademark infringements, challenges, or claims, provided that the franchisee bears the expense of their own counsel.
This restriction is typical in franchising, as the franchisor needs to maintain control over the brand's image and legal defense. By limiting communication to the franchisor and its counsel, All States M.E.D. can ensure a coordinated and consistent approach to addressing any trademark issues. The franchisee's right to consult their own counsel provides a safeguard, allowing them to receive independent legal advice while still adhering to the franchisor's communication protocols.