Is an All Team franchisee required to provide assistance 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 obligated to assist All Team in protecting its interests in litigation related to the brand's trademarks. Specifically, if there's a claim, demand, or suit regarding the use, validity, or ownership of All Team's marks, the franchisee must promptly notify All Team. All Team has the sole discretion to decide on the appropriate actions and control any related legal proceedings.
This means that as an All Team franchisee, you are legally bound to cooperate with All Team in any litigation or administrative proceedings concerning their trademarks. This assistance includes executing documents and performing actions deemed necessary by All Team to protect their interests. However, All Team is not obligated to defend the franchisee if the claim arises from the franchisee's unauthorized use or misuse of the marks.
This requirement is fairly standard in franchising, as franchisors need to protect their brand and trademarks. By requiring franchisees to assist in such matters, All Team aims to ensure a unified and effective defense against any challenges to its intellectual property. Franchisees should be aware of this obligation and be prepared to provide the necessary support to All Team in such situations. Failing to comply with this requirement could potentially lead to breaches of the franchise agreement.