Who owns the trademarks used in operating a Big Blue Swim School?

ferent trademark.

Item 13 TRADEMARKS

You may use certain Marks in operating your BIG BLUE Swim School. Big Blue IP owns, or has applied for, the following principal Marks on the Principal Register of the United States Patent and Trademark Office (the "USPTO"):

Big Blue IP (or its affiliate) filed applications for the last 5 Marks appearing in the table above (and identified by application numbers and dates) based on its actual use of or intent to use the Marks in commerce. Big Blue IP does not have federal registrations for these Marks. Therefore, the Marks do not have many legal benefits and rights as federally-registered trademarks. If our

right to use the Marks is challenged, you may have to change to an alternative trademark, which may increase your expenses.

Big Blue IP has filed, or will file when due, all required affidavits for its registered Marks. While no Marks are due for renewal, Big Blue IP intends to renew them if they remain important to the BIG BLUE Swim School brand. Big Blue IP licenses us to use these Marks and related intellectual property, and to authorize franchisees to use them in operating BIG BLUE Swim Schools, under a Trademark, Copyright, and Know-How License Agreement effective August 28, 2018 (the "License Agreement"). The License Agreement's initial term is 20 years; we have the right to renew the License Agreement for 3 successive 10-year terms. We have the right to terminate the License Agreement at any time. Big Blue IP may terminate the License Agreement immediately if we breach the License Agreement and fail to cure the breach within 30 days after receiving written notice from Big Blue IP. When the License Agreement terminates or expires, we must stop using and sublicensing the Marks and related intellectual property. However, any BIG BLUE Swim School franchisee that has been authorized to use the Marks in its franchise may continue using the Marks until that franchisee's franchise agreement, and any permitted successor franchise agreement, expire or are terminated, but only if the franchisee continues to comply with its obligations in the franchise agreement and any permitted successor franchise agreement during their remaining terms. No other agreement limits our right to use or sublicense any Mark (whether we own them or Big Blue IP licenses them for use in operating BIG BLUE Swim Schools).

There are no currently-effective material determinations of the USPTO, the Trademark Trial and Appeal Board, or any state trademark administrator or court, and no pending infringement, opposition, or cancellation proceedings or material litigation, involving the principal Marks. We do not actually know of either superior prior rights or infringing uses that could materially affect your use of the Marks in any state where we currently intend to offer franchises.

You must follow our rules and other Brand Standards when using the Marks, including giving proper notices of trademark and service mark registration and obtaining required fictitious or assumed-name registrations. You may not use any Mark as part of your corporate or legal business name; with modifying words, terms, designs, or symbols (other than logos we license to you); in selling any unauthorized products or services; or in connection with any digital marketing or in any username, screen name, or profile associated with any Social Media sites without our consent or, if applicable, without complying with our Brand Standards.

Source: Item 13 — TRADEMARKS (FDD pages 55–58)