Is an All Team franchisee required to execute documents to protect All Team's interest in litigation?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE agrees to promptly notify ATFC of any claim, demand, or suit based upon or arising from any attempt by anyone else to use the Marks, any challenge to the validity of the Marks or any challenge to the ownership by ATFC of the Marks, or FRANCHISEE's right to use the Marks. ATFC shall have the sole discretion to take such actions as it deems appropriate and the right to exclusively control any litigation, U.S. Patent and Trademark Office proceeding, or other administrative proceeding arising out of any such apparent infringement, challenge or claim or otherwise relating to any Mark including settlement thereof. FRANCHISEE shall execute any and all instruments and documents, render such assistance and do such acts and things as may, in the opinion of ATFC's, be necessary or advisable to protect and maintain the interest of ATFC in such litigation, U.S. Patent and Trademark Office proceeding or other administrative proceeding and to otherwise protect and maintain the interests of ATFC in the Marks. Notwithstanding anything herein to the contrary, ATFC will not be required to defend FRANCHISEE against such claim or challenge if said claim or challenge arises out of FRANCHISEE's unauthorized use or misuse of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are required to execute documents to protect All Team's interests in litigation. Specifically, if there is a claim, demand, or suit regarding the use of All Team's marks, or any challenge to the validity or ownership of those marks, the franchisee must notify All Team. All Team has the sole discretion to take action and control any litigation or proceedings related to the marks, including settlement.
To protect All Team's interests, the franchisee must execute any documents and provide assistance that All Team deems necessary. However, All Team is not required to defend the franchisee if the claim or challenge arises from the franchisee's unauthorized use or misuse of the marks.
This requirement ensures that All Team can protect its brand and trademarks effectively. It also places a responsibility on the franchisee to cooperate in these efforts by providing necessary documentation and assistance. Franchisees should ensure they fully understand the proper use of All Team's marks to avoid potential disputes and the associated obligations.