Who has the sole discretion to take action regarding litigation related to 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 to take action regarding litigation related to All Team Marks. As a franchisee, you must promptly notify ATFC of any claims, demands, or suits arising from the use of the Marks, challenges to their validity, or challenges to ATFC's ownership.
ATFC has the exclusive right to control any litigation, U.S. Patent and Trademark Office proceeding, or other administrative proceeding related to infringement, challenges, or claims concerning the Marks, including settlement negotiations. The franchisee is required to execute any documents and provide assistance as deemed necessary by ATFC to protect its interests in such legal matters.
However, All Team is not required 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 All Team's guidelines and standards for using its trademarks to avoid potential legal issues where the franchisee would be solely responsible for their defense.