Is an All Team franchisee allowed to use the collateral in violation of any law?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC shall have the right to change the Marks to be used by FRANCHISEE at any time and for any reason it deems appropriate. FRANCHISEE shall pay the costs associated with such change and shall make such necessary changes promptly. Notwithstanding the foregoing, in the event of a change to the Marks, FRANCHISEE will be allowed to continue to use up any supplies with the old Marks for a reasonable time so long as FRANCHISEE's use does not violate any laws, court or administrative orders or rights of third parties to said Marks.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee is allowed to use up any supplies with old marks for a reasonable time as long as the franchisee's use does not violate any laws, court or administrative orders, or rights of third parties to said marks. This means that while All Team has the right to change the marks used by franchisees, franchisees are given some leeway to deplete their existing stock of branded materials after a mark change.
However, this ability to use old marks is explicitly conditional. The franchisee must ensure that their continued use of the old marks does not run afoul of any legal or regulatory restrictions. This includes, but is not limited to, avoiding any infringement on the intellectual property rights of others.
This clause protects All Team from liability should a franchisee's use of outdated materials lead to legal issues. It also places the onus on the franchisee to stay informed about relevant laws and orders, ensuring their business operations remain compliant even during a brand transition. Franchisees should pay close attention to any communications from All Team regarding mark changes and seek legal counsel if they are unsure about the legality of using existing supplies.