What is the Body20 franchisee's obligation regarding documents upon termination or expiration of the agreement related to intellectual property?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 9.6 Post-Termination or Expiration. Upon the expiration or termination of this Agreement for any reason, all of your rights to use the Intellectual Property will automatically revert to us without cost and without the execution or delivery of any document. Upon our request, you will execute all documents that we require to confirm such reversion.
- 9.7 Innovations. All ideas, concepts, techniques, or materials relating to a Studio or the System (collectively, "Innovations"), whether or not protectable intellectual property and whether created by or for you or your Owners, employees, or contractors, must be promptly disclosed to us and will be deemed to be our sole and exclusive property, part of the System and the Intellectual Property, and works made-for-hire for us. To the extent any Innovation does not qualify as a work made-for-hire for us, by this Section, you assign ownership of that Innovation, and all related rights to that Innovation, to us and agree to sign (and to cause
your Owners, employees, and contractors to sign) whatever assignment or other documents we request to evidence our ownership or to help us obtain intellectual property rights in the Innovation. We and our Affiliates have no obligation to make any payments to you or any other person with respect to any Innovations. You may not use any Innovation in operating the Studio or otherwise without our prior approval.
Section 10 Proprietary Information.
- 10.1 Receipt of Proprietary Information.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, all rights to use Body20's intellectual property automatically revert back to them without any cost or the need for any formal documentation. However, Body20 can request the franchisee to execute documents confirming this reversion.
Additionally, the franchisee must promptly disclose to Body20 all ideas, concepts, techniques, or materials relating to the studio or system, considered "Innovations," and these will be deemed Body20's exclusive property. The franchisee must assign ownership of these innovations to Body20 and sign any documents necessary to evidence Body20's ownership or to help them obtain intellectual property rights in the innovation.
Upon termination or expiration, a Body20 franchisee must also immediately cease using all intellectual property, including marks and trade dress, the system, and any confusingly similar imitations. Furthermore, the franchisee must return all hard and electronic copies of proprietary information, including manuals and customer information, as well as other materials related to the studio's operation. Any such information on computer systems or digital storage must be immediately erased.