Is the right to use the Marks granted in the All Team franchise agreement exclusive?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
RANCHISEE will receive three email addresses for free, and then FRANCHISEE must pay ATFC $4 per week for each additional email address used by the Agency (the "Email Address Fee"). The Email Address Fee is paid at the same time and in the same manner as the Technology Fee.
IX. PROPRIETARY MARKS
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.
B. Contest of Marks. FRANCHISEE will not directly or indirectly contest or aid in contesting the validity or ownership of the Marks, trade secrets, methods, procedures and advertising techniques which are part of the Systems, or contest ATFC's right to register, use or license others to use such names and Marks, trade secrets, methods, procedures and techniques. FRANCHISEE will not at any time (whether during the term of this Agreement or after expiration or termination thereof) directly or indirectly commit an act of infringement.
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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the right to use the Marks granted in the franchise agreement is non-exclusive. While All Team grants the franchisee the right to use its System and Marks for operating an agency within a specific area, this right is subject to certain conditions and limitations.
Specifically, All Team retains the right to operate or franchise businesses outside the franchisee's area using the same Systems and Marks, or even different systems and marks. However, All Team agrees not to operate, franchise, or license another All Team agency within the franchisee's designated area, as long as the franchisee complies with the agreement.
Despite this area restriction, All Team, its affiliates, and other franchisees and licensees can still operate similar businesses under different Marks anywhere, including within the franchisee's area. They can also operate different businesses under any marks, including within the franchisee's area. All Team can also service national or regional accounts and market products through alternative channels without compensating the franchisee, even if these activities occur within the franchisee's area. This means that while franchisees have certain protections within their defined area, All Team retains considerable freedom to operate and license businesses that may compete, directly or indirectly, with the franchisee's All Team agency.