Can Fitstop change the Franchise System, including brand standards and trademarks?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.5 You agree that we may change the Franchise System including, without limitation, brand standards, the adoption and use of new or modified trademarks and service marks, Confidential Information, products, and services. You agree to be bound by these changes and promptly comply with all such additions, modifications, and changes at your sole cost and expense except as this Agreement otherwise permits herein.
Section 12: Required Items, Approved Suppliers and Related Obligations
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the authority to modify the Franchise System, which includes brand standards, trademarks, confidential information, products, and services. The franchisee is obligated to comply with these changes promptly and at their own expense, unless otherwise specified in the agreement. This means Fitstop can evolve its brand and offerings, and franchisees must adapt to these changes.
Fitstop also retains the right to modify or discontinue the use of its name, symbols, designs, trademarks, service marks, and patents. While Fitstop will not reimburse franchisees for tangible out-of-pocket costs incurred in making necessary changes to comply with these directives, franchisees are still required to implement the changes according to Fitstop's instructions and timelines. This could involve updating signage, marketing materials, or other branded items to reflect the new standards.
Furthermore, Fitstop emphasizes that the franchisee must operate in strict conformity with the System, as it currently exists and as it may be modified through manuals or written notice. This includes using Fitstop's Proprietary Marks in compliance with the agreement and the manuals, which Fitstop can update or modify. The franchisee cannot interfere with Fitstop's Marks and IP, apply for registration of similar items, or contest Fitstop's ownership or validity of any Mark and/or IP associated with the Franchise System.
Overall, these clauses grant Fitstop significant control over the brand and operational standards, requiring franchisees to stay aligned with any changes Fitstop deems necessary for the System. This ensures consistency across all Fitstop locations but also places the financial burden of adapting to these changes on the franchisee.