Who has the right to control 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. This includes the right to control any settlement related to such litigation. Body20 is also entitled to retain any proceeds, damages, attorney's fees, and other sums recovered from these actions.
As a Body20 franchisee, you are required to promptly notify Body20 of any unauthorized use of its Intellectual Property that you become aware of. You must also inform Body20 of any challenges to the validity of Body20's ownership or right to license its Intellectual Property. Additionally, you must execute all documents and provide any assistance Body20 deems necessary for these proceedings or to maintain the validity and enforceability of its Intellectual Property.
This clause ensures that Body20 maintains control over its brand and system, protecting its trademarks, copyrights, and other proprietary information. It also means that franchisees cannot independently pursue legal action to protect the brand without Body20's consent. This is a common arrangement in franchising, as it allows the franchisor to maintain a consistent legal strategy and protect the overall brand integrity.