What is the duration of the license agreement between Fitstop and the TM Owner?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to use, and license our System franchisees the right to use, the registered marks above and other Proprietary Marks in connection with the franchise system and System Businesses pursuant to a perpetual, royalty-free license agreement with TM Owner entered into in 2022— which provides, among other things, that the TM Owner will continue to license such Proprietary Marks directly to System franchisees in the event this agreement is terminated for any reason. Except for this license agreement, we are not aware of any contract or agreement that significantly limits our right to use, or license the use of, the Proprietary Marks that are material to the franchise being offered.
Source: Item 13 — TRADEMARKS (FDD pages 37–38)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has a perpetual, royalty-free license agreement with the TM Owner, Fitstop IP Pty. Ltd. This agreement, established in 2022, allows Fitstop to use and license its registered marks to franchisees.
This perpetual agreement ensures that Fitstop franchisees can continue using the Proprietary Marks even if the agreement between Fitstop and the TM Owner is terminated. The TM Owner will directly license such Proprietary Marks to System franchisees if the agreement is terminated for any reason. This arrangement provides a level of security and continuity for franchisees, as their right to use the brand's trademarks is protected regardless of the relationship between Fitstop and the TM Owner.
Prospective franchisees should be aware that this license agreement is a critical component of the franchise system, ensuring the ongoing use of the brand's trademarks. It is also important to note that, apart from this license agreement, Fitstop states that they are not aware of any other contracts or agreements that would significantly limit their right to use or license the Proprietary Marks material to the franchise.