Does All Team represent that it owns the registrations to the Marks?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Right to Use Marks. ATFC represents that it owns the registrations to the Marks and has the rights to use the Marks and sublicense the rights to use the Marks according to the terms of this Agreement. FRANCHISEE recognizes that valuable goodwill is attached to the Marks, and that it will use same only in the manner and to the extent specifically licensed by this Agreement. Any goodwill arising out of FRANCHISEE's use of the Marks inures to the benefit of ATFC. FRANCHISEE further acknowledges that the right to use said Marks and the grant contained in this Agreement is non-exclusive. Any unauthorized use of the Marks by the FRANCHISEE is a breach of this Agreement and an infringement of the rights of ATFC. FRANCHISEE agrees that the unauthorized use or misuse of the Marks will constitute irreparable harm to ATFC, and FRANCHISEE expressly waives any requirement that ATFC post security in order to obtain injunctive relief in connection with such use. All provisions of this Agreement applicable to the Marks apply to any additional trademarks, service marks, and commercial symbols hereafter authorized for use by and licensed to the FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) represents that it owns the registrations to the Marks. This means that All Team asserts legal ownership of its trademarks, service marks, trade dress, trade names, and copyrights used in connection with the franchise system. As a franchisee, you are granted a license to use these Marks, but only in the manner and to the extent specifically outlined in the Franchise Agreement.
The agreement emphasizes that any goodwill generated from a franchisee's use of the Marks benefits All Team. Franchisees acknowledge that their right to use the Marks is non-exclusive, meaning All Team can license the Marks to others. Unauthorized use of the Marks by a franchisee constitutes a breach of the Franchise Agreement and an infringement of All Team's rights, potentially leading to legal action.
To protect All Team's ownership, franchisees cannot contest the validity or ownership of the Marks, trade secrets, methods, procedures, and advertising techniques associated with the All Team system. Franchisees are also prohibited from using the Marks or variations of the name "All Team" as part of their corporate name or in internet domain names. All Team retains the right to change the Marks at any time, and while franchisees are allowed to use up existing supplies with the old Marks for a reasonable period, they are responsible for the costs associated with implementing the changes.
These stipulations are typical in franchising, as the franchisor needs to protect its brand identity and ensure consistent use of its trademarks across all franchise locations. Prospective franchisees should carefully review the terms and conditions regarding the use of Marks in the Franchise Agreement to fully understand their obligations and restrictions.