What is the All Team franchisee required to do if someone attempts to use the All Team Marks?
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, if a franchisee becomes aware of someone attempting to use the All Team Marks, they are required to promptly notify ATFC (All Team Franchise Corporation). This includes 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.
All Team retains sole discretion to take actions it deems appropriate, including controlling any litigation or proceedings related to the infringement, challenge, or claim. The franchisee must execute documents, provide assistance, and perform actions that All Team considers necessary to protect its interests in any litigation or proceedings related to the Marks.
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 underscores the importance of franchisees adhering strictly to the approved usage guidelines for the All Team Marks to avoid potential legal issues and ensure they receive support from the franchisor in case of infringement by others. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand and trademarks, which are key assets of the franchise system.