Maybe..... What if the tournament was of an undesirable nature to the franchisor? Even though the local Outback was involved, the parent company may not want their name associated with the tournament. We ALWAYS get written permission on corporate headquarters letterhead. Years ago we were embroidering Greek letters for college sororities and fraternities. Just the 3 letters, no logos. One day this well dressed young man walks in and hands us a cease and desist letter from the Greek Council in Texas, I think. We were lucky to not get sued technically.
It's a CYA thing. Can your business afford a law suit?
A charity tournament of any kind that has PAID SPONSORS probably wouldn't be "undesirable" even if it ended in a brawl with a 100 cops called out. Those drunken golfers....sheesh!!!
If the franchisor has issues, they have it with the franchisee.
We have never been sued but have sued a few times. Not that I worry as my company is virtually judgment-proof. If they win they can have an open box of paper clips, a few elastic bands and a handful of used pens and pencils which are our total assets...plus any lint that may be around.
A bit of common sense goes a long way. If you want customers, especially those who use volunteers to get sponsorships, you don't toss roadblocks in their path or they will go elsewhere.
Now some idiot who wants logo decals to sell at the flea market or from his back bedroom via the Internet can find someone else to do his work.