Can the arbitrator declare a Mark generic or invalid in a Body20 arbitration?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Relief. The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including money damages (with interest on unpaid
amounts from the date due), specific performance, injunctive relief, and attorneys' fees (on a solicitor and its own client basis) and costs, provided that the arbitrator may declare any Mark generic or otherwise invalid or, except as expressly provided in Section 16.5 (Mutual Waiver of Punitive Damages), award any special, consequential, exemplary, or punitive damages against either party (we and you hereby waiving to the fullest extent permitted by law, except as expressly provided in Section 16.5 below, any right to or claim for any special, consequential, exemplary, or punitive damages against the other).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, in arbitration proceedings, the arbitrator has the authority to declare any Mark generic or otherwise invalid. This means that during an arbitration, the arbitrator can determine that a trademark or service mark associated with the Body20 brand has become so widely used that it no longer identifies the brand exclusively, or that the mark is not legally protectable.
This clause has significant implications for a Body20 franchisee. If a dispute arises that goes to arbitration, the arbitrator has the power to rule on the validity and distinctiveness of Body20's Marks. If the arbitrator declares a Mark generic or invalid, it could weaken Body20's brand protection and potentially impact the franchisee's ability to exclusively use and benefit from the brand's intellectual property. This could also affect the value and recognition of the franchise.
It is important to note that while the arbitrator has this power, disputes related to the Lanham Act or the ownership/validity of intellectual property can be excluded from arbitration if Body20 does not consent. In such cases, these disputes would be resolved in a U.S. District Court. This exception provides Body20 with an option to litigate certain intellectual property matters in a court of law rather than through arbitration, potentially allowing for more robust legal precedent and protection of their Marks.