Who has the discretion to decide what action to take regarding claims of infringement of Fitstop's Marks and IP?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.6 You shall immediately notify us of any claim of infringement resulting from any use of the Marks and IP. We have sole discretion as to what action to take, if any, regarding such matters. If we elect to take legal or administrative action in any such matter, you promise to join as a party to such action, or to allow us to bring the action solely in the name of your Franchised Business, but only as and if we so direct. In any such event, we shall bear the legal fees and court costs of prosecuting or defending any such action.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has sole discretion regarding actions taken on infringement claims related to their Marks and IP. As a Fitstop franchisee, you are obligated to immediately inform Fitstop of any infringement claims resulting from the use of their Marks and IP.
Fitstop retains the authority to decide whether or not to pursue any action regarding these matters. If Fitstop chooses to take legal or administrative action, you, as the franchisee, must participate in the action as directed by Fitstop. This may include joining the action as a party or allowing Fitstop to pursue the action solely in the name of your franchised business.
In the event of legal or administrative action, Fitstop will be responsible for covering the legal fees and court costs associated with prosecuting or defending the action. This arrangement protects the franchisee from incurring these expenses directly, but it also means the franchisee has limited control over the legal strategy and decisions related to the infringement claim. This is a fairly standard practice in franchising, as the franchisor has a vested interest in protecting its brand and intellectual property across the entire franchise system.