What are the restrictions outlined in the Trademark Coexistence Agreement between Alloy and POSAB, LLC?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no agreements currently in effect which limit our right to use or to franchise others to use the Proprietary Marks, except for (a) a Trademark Coexistence Agreement between APTS and POSAB, LLC, and (b) a Trademark License Agreement between us and APTS dated August 1, 2019.
The Trademark Coexistence Agreement between APTS and POSAB, LLC ("Trademark Coexistence Agreement") relates to certain Alloy trademarks that POSAB, LLC owns for certain
women's clothing and accessories. Given the two brand's different channels of trade and different targeted customers, the Trademark Coexistence Agreement provides that (i) POSAB, LLC's women's clothing and accessories can be offered and sold through online, catalogs and other channels of trade, but it will not market and sell its products at any athletic or fitness gyms, and (ii) APTS agreed that men's, women's and unisex athletic apparel with APTS Alloy mark can be used in our Facilities but not outside of the Facilities.
Source: Item 13 — TRADEMARKS (FDD pages 46–48)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, there is a Trademark Coexistence Agreement between APTS and POSAB, LLC that impacts the use of certain Alloy trademarks. This agreement exists because POSAB, LLC owns certain Alloy trademarks related to women's clothing and accessories.
The agreement places specific restrictions on both parties to avoid market confusion, given the different channels of trade and target customers. POSAB, LLC is permitted to offer and sell its women's clothing and accessories through online platforms, catalogs, and other channels. However, POSAB, LLC is explicitly restricted from marketing and selling its products at any athletic or fitness gyms.
Conversely, APTS (and by extension, Alloy franchisees) has agreed that men's, women's, and unisex athletic apparel bearing the APTS Alloy mark can be used within Alloy Facilities. However, Alloy is restricted from using the Alloy mark on apparel outside of its fitness facilities. This agreement ensures that both companies can operate without infringing on each other's trademarks within their respective markets.