What constitutes unauthorized use of Proprietary Marks that Fitstop can seek injunctive relief for?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
her intellectual property rights associated with the same; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- ©2024 Fitstop USA, Inc. 19.3 Injunctive Relief. You acknowledge and agree that irreparable harm could be caused to us by your violation of certain provisions of this Agreement and, as such, in addition to any other relief available at law or equity, we shall be entitled to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i) your unauthorized use of the Proprietary Marks and Confidential Information (including any proprietary software used in connection with the Franchised Business); (ii) the in-term covenant not to compete, as well as any other violations of the restrictive covenants set forth in this Agreement; (iii) your obligation upon termination or expiration of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise
involving the Proprietary Marks, as now or hereafter amended; (v) disputes and controversies involving enforcement of our rights with respect to confidentiality under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop can seek injunctive relief against a franchisee for the unauthorized use of its Proprietary Marks and Confidential Information. This includes any proprietary software used in connection with the Franchised Business. Injunctive relief is a court order that requires a party to cease a specific action, in this case, the unauthorized use of Fitstop's protected assets.
Fitstop outlines further instances that could cause irreparable harm, entitling them to seek restraining orders or temporary/permanent injunctions. These include violations of in-term covenants not to compete, any other violations of the restrictive covenants, and franchisee obligations upon termination or expiration of the agreement. Disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Proprietary Marks, as now or hereafter amended, also fall under this category.
Additionally, Fitstop can pursue injunctive relief for disputes and controversies involving enforcement of their rights with respect to confidentiality under the agreement. They can also seek it to prohibit any act or omission by a franchisee or their representatives that violates applicable law, threatens the Franchise System, or threatens other System franchisees. The franchisee's only recourse if an injunction is entered is to seek its dissolution if they prevail in a subsequent proceeding.