What are the Body20 franchisee's obligations in Item 9 regarding the use of trademarks in Item 13, and what are the penalties for trademark infringement?
Body20 Franchise · 2025 FDDAnswer 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 the 2025 FDD, Body20 franchisees have specific obligations regarding the use of Body20's trademarks, as detailed in Item 13. Franchisees must use the marks strictly in accordance with the Franchise Agreement and the manuals provided. This includes displaying the marks in a manner specified by Body20 on signage, written materials, forms, advertising, promotional materials, supplies, employee uniforms, business cards, receipts, letterheads, contracts, stationery, and other designated materials. Franchisees must also include a notice stating that the studio is independently owned and operated under license from Body20 on all specified materials.
Furthermore, franchisees cannot use the Body20 marks in unauthorized ways, such as incorporating them into a corporate or legal business name, using them with unauthorized prefixes or suffixes, selling unauthorized services or products under the marks, or using them in domain names or social media accounts without Body20's explicit consent. If Body20 directs a franchisee to modify or discontinue the use of any marks, the franchisee must comply promptly, and Body20 is not obligated to reimburse the franchisee for any associated costs.
Franchisees are also obligated to protect Body20's trademarks. They must promptly notify Body20 if any other entity attempts to use the marks or any similar imitations, and they must immediately report any infringement or challenges to their use of the marks. Body20 has the right to take any action it deems appropriate to protect its trademarks, and it is entitled to retain all proceeds, damages, and attorneys' fees recovered in connection with such actions. While Body20 has the right to control any legal proceedings related to the marks, the Franchise Agreement does not require Body20 to take action to protect the franchisee's right to use the marks or to indemnify the franchisee for expenses or damages in legal proceedings.
In summary, Body20 franchisees must adhere to strict guidelines regarding the use of Body20's trademarks, actively protect those trademarks by reporting any potential misuse, and comply with any directives from Body20 regarding changes or discontinuation of trademark use. Failure to comply with these obligations could result in a breach of the Franchise Agreement and potential legal consequences.