Under what circumstances does the U.S. Trademark Act of 1946 govern the All Team franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent that this Agreement or any particular dispute is governed by the U.S. Trademark Act of 1946 (Lanham Act, 115 U.S.C. 1051), this Agreement will be governed, to the extent permissible, by the laws of the State of Florida, without regard to the laws of conflict.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the U.S. Trademark Act of 1946, also known as the Lanham Act (115 U.S.C. 1051), governs the All Team franchise agreement or any particular dispute related to it. However, this governance is only to the extent permissible. This means that while the agreement generally defaults to the laws of Florida, the Lanham Act takes precedence when trademark issues arise. This is a fairly standard clause in franchise agreements, as trademark protection is crucial for both the franchisor and the franchisee.
In practical terms, this means that if there is a dispute over the use of the All Team trademarks, service marks, trade names, logotypes, or other commercial symbols, the provisions of the Lanham Act will be applied. This could include issues such as trademark infringement, dilution, or other related matters. The agreement also states that All Team will protect the franchisee's rights to use the trademarks and indemnify the franchisee from any losses, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name, particularly in Minnesota.
For a prospective All Team franchisee, this clause offers some assurance that their right to use the All Team brand's trademarks will be protected under federal law. It also implies that All Team is committed to defending its trademarks and will support its franchisees in case of any legal challenges related to trademark usage. However, franchisees should be aware that the agreement primarily defaults to Florida law for other matters, unless specific state laws where the agency is located provide otherwise or if state regulators require amendments.