Who has the right to exclusively control litigation arising from infringement of All Team Marks?
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, All Team Franchise Corporation (ATFC) has the sole discretion and right to exclusively control any litigation arising from infringement, challenge, or claim relating to any Mark. This includes the right to control U.S. Patent and Trademark Office proceedings or other administrative proceedings, including settlement negotiations.
As a franchisee, you are required to promptly notify ATFC of any potential infringement or challenges to the validity or ownership of the All Team Marks. Additionally, you must execute any documents and provide assistance that ATFC deems necessary to protect their interests in any litigation or proceedings related to the Marks.
However, All Team is not obligated to defend the franchisee if the claim or challenge arises from the franchisee's unauthorized use or misuse of the Marks. This underscores the importance of adhering to the franchise agreement and using the Marks only in the manner specifically licensed. This clause protects All Team's brand and reputation, while placing responsibility on the franchisee to use the trademarks correctly.