Is an All Team franchisee required to assist All Team in protecting its interest in litigation or other proceedings related to the All Team Marks?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or any claim by any person of any rights in any Mark. We will have the sole discretion to take such action as it deems appropriate and the right to exclusively control any litigation or administrative proceedings arising out of such infringement, challenge or claim. You must execute any and all instruments and documents, provide such assistance, and take any action that may be necessary or advisable to protect and maintain our interest in any litigation or other proceeding or otherwise to protect and maintain our interest in the Marks. The Franchise Agreement does not require us to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a Mark or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 26–27)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are obligated to assist All Team in protecting its trademarks. Specifically, if there is any infringement or challenge to the use of any All Team mark, the franchisee must notify All Team immediately. All Team has the sole discretion to take action it deems appropriate and has the right to exclusively control any litigation or administrative proceedings.
To protect All Team's interest in any litigation or other proceeding, the franchisee must execute all necessary instruments and documents, provide assistance, and take any action that may be necessary or advisable. However, the Franchise Agreement does not require All Team to participate in the franchisee's defense or indemnify them for expenses or damages if the franchisee is a party to an administrative or judicial proceeding involving a Mark, or if the proceeding is resolved unfavorably to the franchisee.
This requirement is fairly standard in franchising, as franchisors need to protect their brand's trademarks. It is important for prospective franchisees to understand that while they must assist All Team in protecting its trademarks, All Team is not obligated to defend or indemnify the franchisee in legal proceedings related to the marks.