With whom does Alloy have a Trademark Coexistence Agreement?
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, Alloy, through APTS, has a Trademark Coexistence Agreement with POSAB, LLC. This agreement pertains to certain Alloy trademarks owned by POSAB, LLC, specifically for women's clothing and accessories.
The Trademark Coexistence Agreement outlines specific conditions for both parties. POSAB, LLC can offer and sell its women's clothing and accessories online, through catalogs, and other channels, but it is restricted from marketing and selling its products at athletic or fitness gyms. APTS, on the other hand, can use the Alloy mark on men's, women's, and unisex athletic apparel within its facilities but not outside of them.
This type of agreement is common in franchising to avoid trademark disputes when similar brands operate in related industries. For a prospective Alloy franchisee, this agreement means that there are specific limitations on how and where Alloy-branded apparel can be sold, particularly concerning online sales versus sales within physical fitness facilities. It also clarifies that another company, POSAB, LLC, has rights to the Alloy trademark in the realm of women's clothing and accessories sold through specific channels. Franchisees should be aware of these limitations to avoid any potential trademark infringement issues.