What rules must an All States M.E.D. franchisee follow when using the Marks?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
or prior superior uses that could materially affect the use of the Marks.
You do not receive any rights to the Marks other than the right to use them in the operation of your Franchised Business. You must follow our rules when you use the Marks. You must use the Marks as the sole trade identification of the franchised business. You cannot use any Mark or portion of any Mark as part of any business entity name. You may not use any Mark in connection with the sale of any unauthorized services or products, or in any other manner that we do not authorize in writing. You must obtain a fictitious or assumed name registration if required by your state or local law. Any unauthorized use of the Marks by you is a breach of the Franchise Agreement and an infringement of our rights in the Marks. You must not contest the validity or ownership of the Marks, including any Marks that we license to you after you sign the Franchise Agreement. You must not assist 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. You must take any actions that, in the opinion of our counsel, may be advisable to protect and maintain our interests in any proceeding or to otherwise protect and maintain our interests in the Marks.
If we require, you must modify or discontinue the use of any Mark and use other trademarks or service marks we designate. We do not have to reimburse you for modifying or discontinuing the use of a Mark or for substituting another trademark or service mark for a discontinued Mark. If we adopt and use new or modified Marks, you must add or replace equipment, supplies and fixtures, and you must make other modifications we designate as necessary to adapt your franchised business for the new or modified Marks. We do not reimburse you for any loss of goodwill associated with a modified or discontinued Mark.
You must notify us if you apply for your own trademark or service mark registrations. You must not register or seek to register as a trademark or service mark, either with the USPTO or any state or foreign country, any of the Marks or a trademark or service mark that is confusingly similar to any of our Marks.
ITEM 14. PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION
No patents or pending patent applications are material to the franchise. We own copyrights in the Operations Manual, our website, our marketing materials, training manuals or videos, and other copyrightable items that are part of the System.
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, franchisees must adhere to specific rules when using the Marks associated with the franchise. All States M.E.D. franchisees are only granted the right to use the Marks in the operation of their Franchised Business and must use the Marks as the sole trade identification of the franchised business. They are prohibited from using any Mark or portion of any Mark as part of any business entity name and cannot use any Mark in connection with the sale of any unauthorized services or products, or in any other manner that All States M.E.D. does not authorize in writing. Franchisees must also obtain a fictitious or assumed name registration if required by their state or local law. Any unauthorized use of the Marks constitutes a breach of the Franchise Agreement and an infringement of All States M.E.D.'s rights.
Franchisees must not contest the validity or ownership of the Marks, including any Marks that All States M.E.D. licenses to them after they sign the Franchise Agreement, nor assist any other person in doing so. They 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, and are restricted from communicating with anyone other than All States M.E.D. and its counsel regarding such matters, unless legally required. Franchisees are also obligated to take any actions that All States M.E.D.'s counsel deems advisable 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.
All States M.E.D. may require franchisees to modify or discontinue the use of any Mark and use other trademarks or service marks it designates, without reimbursement for any associated costs or loss of goodwill. If All States M.E.D. adopts new or modified Marks, franchisees must add or replace equipment, supplies, and fixtures, and make other modifications necessary to adapt their franchised business, again without reimbursement. Franchisees must notify All States M.E.D. if they apply for their own trademark or service mark registrations and are prohibited from registering any of All States M.E.D.'s Marks or confusingly similar trademarks.
It is important to note that All States M.E.D. does not have a federal registration for its principal trademark, which means it lacks many legal benefits and rights typically associated with federally registered trademarks. If All States M.E.D.'s right to use the trademark is challenged, franchisees may have to change to an alternative trademark, potentially increasing their expenses. On February 14, 2024, the USPTO issued a Nonfinal Office Action on All States M.E.D.'s pending application for the Mark "All States M.E.D.," questioning their right to register the Mark based upon several factors.