What is the definition of 'Marks' in relation to unauthorized use by a Bft franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor owns, administers and grants franchises for a system of fitness studios that (a) offer and sell specialized instruction and related services ("Approved Services") and merchandise and other products ("Approved Products"), (b) are currently identified by the trademark "BFT" and related designs and use other related trademarks and service marks designated from time to time by Franchisor (the "Marks"), (c) reflect distinctive interior design and display procedures, and color scheme and décor (the "Trade Dress"), and (d) operate using a designated "System" which includes the Marks, Trade Dress and certain of Franchisor's other intellectual property including trade secrets, copyrights, confidential and proprietary information, and designated training and exercise methods and know-how, fitness equipment, furniture and fixtures, marketing, advertising and sales promotions, cost controls, accounting and reporting procedures, and personnel management systems (each, a "BFT Studio" and collectively, the "BFT Studios").
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the 'Marks' refer to the trademark "BFT" and related designs, as well as other related trademarks and service marks designated by Bft from time to time. These marks are used to identify the fitness studios operating under the Bft system. Unauthorized use of these marks by a franchisee constitutes a breach of the franchise agreement and an infringement of Bft's rights.
Bft franchisees are explicitly prohibited from using any Mark as part of a corporate or business name with modifications or in any altered form. They must display and use the Marks only in the manner prescribed or authorized by Bft and cannot conduct any other business using the Marks without Bft's permission. Additionally, franchisees must notify Bft immediately if they become aware of any unauthorized use or infringement of the Marks by a non-licensee.
Upon termination or expiration of the franchise agreement, the franchisee must immediately cease using the Marks and remove any signs or materials displaying them. They are also prohibited from using any reproduction, counterfeit, copy, or imitation of the Marks that could cause confusion or dilute Bft's rights. These stipulations ensure that Bft maintains control over its brand identity and prevents unauthorized parties from benefiting from its trademarks and goodwill.
If a Bft franchisee compromises the secure access to the Learning Management System, including allowing unauthorized users access to confidential content or posting confidential information online, the franchisee acknowledges that they will be required to compensate Bft for the breach and related damage to the Marks and System. This highlights the importance of protecting Bft's intellectual property and the potential financial consequences of failing to do so.