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What are the Body20 franchisee's obligations in Item 9 regarding the use of trademarks, considering the trademark rights granted in Item 13, and what are the potential consequences of infringement, and what insurance coverage is required to protect against trademark infringement claims?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

You may also use certain other Marks owned by or licensed to us in the operation of your Studio. You must use the Marks only in strict accordance with the Franchise Agreement and Manuals. You may not use any Mark (i) as part of any corporate or legal business name, (ii) with any prefix, suffix or other modifying words, terms, designs or symbols (other than logos we have licensed to you), (iii) in selling any unauthorized services or products, (iv) as part of any domain name, electronic address, metatag, social media account, or otherwise in connection with any website or other electronic medium without our consent, or (v) in any other manner we have not expressly authorized in writing. You must display the Marks in a manner that we specify on signage at the Studio and on all written materials, forms, advertising, promotional materials, supplies, employee uniforms, business cards, receipts, letterhead, contracts, stationary, and other materials we designate. Upon receipt of notice from us, you must discontinue, alter or substitute any of the Marks as we direct.

You must display in a conspicuous location in or upon the Studio, or in a manner that we specify, a sign containing a notice that the Studio is owned and operated independently by you who is an authorized licensed user of the Marks, using language that we designate. You must

include this notice or other similar language that we specify on all forms, advertising, promotional materials, business cards, receipts, letterhead, contracts, stationary, and other written materials we designate.

You must promptly notify us if any other person or Entity attempts to use any of the Marks or any colorable imitation of any of the Marks. You must immediately notify us of any infringement of or challenge to your use of any of the Marks. We will have the right to take any action that we deem appropriate, but the Franchise Agreement does not require us to take any action to protect your right to use any of the Marks or to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving any of the Marks. We will have the right to control any administrative proceeding or litigation related to the Marks. 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 Marks.

If we decide that you should modify or discontinue using any of the Marks, or use one or more additional or substitute service marks or trademarks, you must comply with our directions in the time that we reasonably specify, and neither we nor any of its affiliates will have any obligation to reimburse you for the cost of complying with our directions.

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the use of Body20's trademarks. Franchisees must use the marks only in strict accordance with the Franchise Agreement and Manuals. They are prohibited from using any mark as part of a corporate or legal business name, with unauthorized modifications, in selling unauthorized services or products, as part of any domain name without consent, or in any manner not expressly authorized in writing. Franchisees must display the marks as specified by Body20 on signage and various materials, including advertising and promotional content. Additionally, franchisees must include a notice indicating that the studio is independently owned and operated under license from Body20 on specified materials. Franchisees are required to notify Body20 promptly if any other person or entity attempts to use the marks or if there is any infringement or challenge to the franchisee's use of the marks. Body20 retains the right to take any action it deems appropriate to protect the marks and will control any related legal proceedings, retaining any proceeds or damages recovered. Franchisees must assist Body20 in these efforts. If Body20 decides that a franchisee should modify or discontinue using any of the marks, the franchisee must comply with these directions without any obligation of reimbursement from Body20.

For franchisees operating in Minnesota, there are additional protections. Provided the franchisee has complied with all provisions of the Franchise Agreement applicable to the marks, Body20 will protect the franchisee's right to use the marks and will indemnify them from any loss, costs, or expenses arising out of claims, suits, or demands regarding their use of the marks, in accordance with Minn. Stat. Sec. 80C 12, Subd. 1(g).

The FDD excerpt does not specify the required insurance coverage to protect against trademark infringement claims. A prospective franchisee should ask the franchisor about the specific types and amounts of insurance coverage required to protect against trademark infringement claims.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.