If All Team modifies or discontinues the use of its Marks, does the All Team franchisee have a claim against All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
If we decide to modify or discontinue the use of the Marks and/or to use one or more additional or substitute names or marks, you will be obligated to do so at your own expense and without claim against us. You will need to comply within a reasonable time of the request.
Source: Item 13 — TRADEMARKS (FDD pages 26–27)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if All Team decides to modify or discontinue the use of its Marks, franchisees are obligated to comply at their own expense and without any claim against All Team. This includes using additional or substitute names or marks. Franchisees must comply with these changes within a reasonable time frame after All Team's request.
This stipulation places the financial burden of rebranding or adopting new marks entirely on the franchisee. This could involve costs for new signage, marketing materials, and other related expenses. The franchisee has no recourse to seek compensation from All Team for these costs, regardless of the reason for the change.
This type of clause is not uncommon in franchise agreements, as franchisors need the flexibility to update their branding to stay competitive or address legal challenges. However, it's crucial for prospective All Team franchisees to understand this obligation and factor in potential rebranding costs when evaluating the franchise opportunity. Franchisees should inquire about All Team's history of trademark changes and its plans for future branding to better assess this risk.