Who is entitled to proceeds from litigation relating to Body20's Intellectual Property?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right, but no obligation, to initiate, direct, and control any litigation or administrative proceeding relating to the Intellectual Property, including any settlement.
We will be entitled to retain any and all proceeds, damages, and other sums, including attorneys' fees, recovered or owed to us or our Affiliates in connection with any such action.
You agree to execute all documents and render any other assistance we may deem necessary to any such proceeding or any effort to maintain the continued validity and enforceability of the Intellectual Property.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to initiate, direct, and control any litigation or administrative proceeding relating to its Intellectual Property, including any settlement. This means Body20, not the franchisee, decides whether to pursue legal action to protect its Intellectual Property.
Furthermore, Body20 is entitled to retain any and all proceeds, damages, and other sums, including attorneys' fees, recovered or owed to them or their affiliates in connection with any such action. Therefore, even if a franchisee identifies an infringement or contributes to a successful legal outcome, the financial benefits accrue solely to Body20.
As a Body20 franchisee, you are obligated to notify Body20 promptly of any unauthorized use of its Intellectual Property or any challenges to its validity or ownership. Additionally, you must execute all documents and provide any assistance Body20 deems necessary for such proceedings. This arrangement underscores that Body20 maintains complete control over its Intellectual Property and the legal strategies to protect it, while the franchisee's role is limited to reporting and assisting as needed.