What are the Body20 franchisee's obligations in Item 9 regarding the use of trademarks as described in Item 13?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The Development Agreement does not grant you the right to use the Marks. These rights arise only under Franchise Agreements you sign with us.
What This Means (2025 FDD)
According to the 2025 FDD, Item 13 outlines the franchisee's obligations regarding Body20's trademarks. The franchisee must include a notice, or similar language specified by Body20, on all forms, advertising, promotional materials, business cards, receipts, letterheads, contracts, stationary, and other written materials designated by Body20. This ensures consistent branding and trademark usage across all franchise locations.
Furthermore, the franchisee is required to promptly notify Body20 if any other person or entity attempts to use any of Body20's marks or any imitation of those marks. They must also immediately inform Body20 of any infringement or challenge to their use of the marks. Body20 retains the right to take any action it deems appropriate to protect its trademarks, but the franchise agreement does not obligate Body20 to take action, participate in the franchisee's defense, or indemnify the franchisee for expenses or damages in legal proceedings involving the marks. Body20 also has the right to control any administrative or legal proceedings related to the marks and is entitled to retain any proceeds, damages, or attorneys' fees recovered in connection with such actions. The franchisee must execute all documents and provide assistance necessary for these proceedings or efforts to maintain the validity and enforceability of the marks.
If Body20 decides that a franchisee should modify or discontinue using any of the marks, or use additional or substitute marks, the franchisee must comply with Body20's directions within a reasonable timeframe. Neither Body20 nor its affiliates are obligated to reimburse the franchisee for the costs of complying with these directions. It is important to note that the Development Agreement does not grant the right to use the marks; these rights are only granted under the Franchise Agreements signed with Body20. This clarifies that trademark usage rights are specifically tied to the franchise agreement and not the broader development agreement.