Is All Team required to defend or indemnify a franchisee in an administrative or judicial proceeding involving an All Team Mark?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or any claim by any person of any rights in any Mark. We will have the sole discretion to take such action as it deems appropriate and the right to exclusively control any litigation or administrative proceedings arising out of such infringement, challenge or claim. You must execute any and all instruments and documents, provide such assistance, and take any action that may be necessary or advisable to protect and maintain our interest in any litigation or other proceeding or otherwise to protect and maintain our interest in the Marks. The Franchise Agreement does not require us to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a Mark or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 26–27)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team is not required to defend or indemnify a franchisee in an administrative or judicial proceeding involving an All Team Mark. This means that if a franchisee is involved in a legal dispute related to the use of All Team's trademarks, the franchisee will be responsible for their own legal defense and any associated expenses or damages. This is a critical point for prospective franchisees to understand, as it outlines their responsibility in protecting and defending the All Team brand at their own cost.
Franchisees are required to notify All Team immediately of any potential infringement or challenges to the use of any All Team mark, or any claims by others regarding rights to a mark. All Team retains the sole discretion to take action and has the right to exclusively control any litigation or administrative proceedings arising from such issues. Franchisees must also execute documents, provide assistance, and take actions necessary to protect All Team's interest in any litigation or proceeding related to the marks.
This arrangement is not uncommon in franchising, where franchisors often maintain control over trademark-related legal matters to ensure consistent brand protection. However, the financial burden of defending against claims or resolving disputes falls on the franchisee in this case. Prospective franchisees should factor in potential legal costs associated with trademark issues when evaluating the overall investment and risks associated with the All Team franchise.