Does Fitstop's affiliate, Fitstop IP Pty Limited, license intellectual property to Fitstop?

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop IP Pty Limited, also known as TM Owner, licenses intellectual property to Fitstop. While Fitstop does not own any registered patents, both Fitstop and its affiliate, Fitstop IP Pty Limited, claim common law copyright and trade secret protection for aspects of the franchise system. These aspects include manuals, training materials, advertising, and business materials.

This licensing agreement means that Fitstop franchisees are using intellectual property that is ultimately owned and controlled by Fitstop IP Pty Limited. Fitstop retains the right to revise its system and copyrighted materials, and franchisees must cease using any outdated copyrighted material. Franchisees are responsible for printing any revised or new advertising, marketing, or other business materials.

Fitstop also considers certain information provided to franchisees as trade secrets and confidential information. Franchisees are prohibited from divulging or using this information for the benefit of any other person or entity, both during and after the term of the Franchise Agreement. This includes systems, processes, procedures, software, databases, logos, manuals, advertising information, and promotional materials. Franchisees may only share confidential information with employees who need access to it to fulfill their employment obligations, and these employees must sign a confidentiality agreement.

Furthermore, any new concepts, processes, or improvements developed by the franchisee or their employees in the operation or promotion of the Fitstop business become the sole property of Fitstop. The franchisee must notify Fitstop of such developments and provide all necessary related information without compensation. Fitstop will own all related intellectual property rights, and the franchisee must assist Fitstop in obtaining and enforcing these rights.