What appointment does a Fitstop franchisee make regarding documentation for intellectual property rights?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement provides that if you, your employees, or principals develop any new concept, process or improvement in the operation or promotion of any System Business, you will promptly notify us and provide us with all necessary related information, without compensation. Any new concept, process or improvement will become our sole property and we will be the sole owner of all patents, patent applications, trademarks, copyrights and other intellectual property rights related to such new concepts. You and your principals will assign to us any rights you may have or acquire in new concepts you or your employees develop, including the right to modify such concept, process or improvement, and otherwise will waive and/or release all rights of restraint and moral rights to any new concepts you or your employees develop. You and your principals agree to assist us in obtaining and enforcing the intellectual property rights to any such concept, process or improvement in any and all countries and further agree to execute and provide us with all necessary documentation for obtaining and enforcing such rights. You and your principals will irrevocably designate and appoint us as your agent and attorney-in-fact to execute and file any such documentation and to do all other lawful acts to further the prosecution and issuance of patents or other intellectual property rights related to any such concept, process or improvement. In the event that these provisions in the Franchise Agreement are found to be invalid or otherwise unenforceable, you and your principals will grant to us a worldwide, perpetual, non-exclusive, fully-paid license to use and sublicense the use of the concept, process or improvement to the extent such use or sublicense would, absent the Franchise Agreement, directly or indirectly infringe on your rights to the new concepts.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 38–40)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees and their principals must assist Fitstop in securing and defending intellectual property rights for any new concepts, processes, or improvements developed during the operation of the franchise. This includes providing all necessary documentation to Fitstop for obtaining and enforcing these rights across all countries.
To facilitate this process, the franchisee and their principals irrevocably appoint Fitstop as their agent and attorney-in-fact. This appointment grants Fitstop the authority to execute and file any documentation and perform all lawful acts necessary to pursue and secure patents or other intellectual property rights related to any new concepts, processes, or improvements.
In the event that these provisions within the Franchise Agreement are deemed invalid or unenforceable, the franchisee and their principals agree to grant Fitstop a worldwide, perpetual, non-exclusive, fully-paid license. This license allows Fitstop to use and sublicense the use of the concept, process, or improvement to the extent that such use or sublicense would, without the Franchise Agreement, directly or indirectly infringe on the franchisee's rights to the new concepts. This ensures that Fitstop retains the ability to utilize and share any advancements made within the Fitstop system, regardless of the enforceability of the initial intellectual property assignment.