Who has the right to control litigation arising from trademark infringement related to the All Team franchise?
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 retains sole discretion and the exclusive right to control any litigation or administrative proceedings arising from trademark infringement, challenges, or claims related to its marks. This means that if someone infringes on the All Team trademark, All Team, not the franchisee, decides how to handle the legal situation.
As a franchisee, you are required to immediately notify All Team of any potential infringement or challenges to the use of any mark, or any claim by any person of any rights in any Mark. Furthermore, you must assist All Team by executing documents and taking actions deemed necessary to protect their interest in any litigation or proceeding.
It is important to note that the Franchise Agreement does not obligate All Team to defend or indemnify the franchisee in case of legal proceedings involving a mark, or if the proceeding is resolved unfavorably to the franchisee. This means that franchisees could potentially bear the costs of defending themselves in trademark-related lawsuits, even if the issue stems from the use of the All Team mark. This is a fairly typical arrangement in franchising, as franchisors generally want to maintain control over their brand and trademarks, but franchisees should be aware of the potential costs and risks involved.