What must a Fitstop franchisee do regarding the standards for using the Fitstop Marks?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
to the franchise being offered.
You must strictly comply with our standards, specifications, rules, requirements, and instructions regarding the use of the Marks. The goodwill associated with our Marks will remain our exclusive property, and you will receive no tangible benefit from our goodwill, except from the operation or possible sale of the Franchised Business during the term of the Franchise Agreement. Any increase in the goodwill associated with our Marks during the term of the Franchise Agreement will benefit us. All rights to use our Marks will automatically revert to us without cost and without the execution or delivery of any documents, upon the expiration or termination of your Franchise Agreement.
As of the Issue Date of this Franchise Disclosure Document, there is no litigation pending arising out of our Marks, and we are not aware of any superior rights in, or infringing uses of, our Marks that could materially affect your right to use these marks. Presently, there are no effective adverse material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, and no pending infringement, opposition or cancellation proceedings or any material litigation involving the Marks. There are no agreements in effect that significantly limit our right to use, or license the use of, the Marks that are material to the franchise.
You may not use all or any portion of our Marks as part of your company name and, without our prior written consent, as part of your trade name or "d/b/a". You may not modify the Marks with words, designs or symbols, except those that we license to you. You may not use our Marks in connection with the sale of an unauthorized product or service or in a manner not authorized in writing by us. During the term of the Franchise Agreement and continuing after the expiration or termination of the Franchise Agreement, neither you nor any of your managers will, directly or indirectly, contest, challenge or assist in the contesting or challenging of, our right, title, ownership, or interest in our Marks, trade secrets, methods, procedures, and advertising techniques that are part of our franchise System, or contest our sole right to register, use, or license others to use, our Marks, trade secrets, methods, procedures, advertising techniques, and any other mark or name that incorporates the terms "Fit" or "Stop" and/or any similar phrase.
You must immediately notify us in writing if you become aware of any unauthorized use of our Marks or other proprietary information and you must permit us to participate in any litigation involving you and our Marks. We will take the action we think appropriate. We will indemnify, defend and hold you harmless in connection with any third-party claims that are brought against you that arise solely out of your authorized use of any Marks in the manner we prescribe, provided you notify us of the proceeding within three days and you have complied with our directions with regard to the proceeding. We have the right to control the defense and settlement of any proceeding.
Source: Item 13 — TRADEMARKS (FDD pages 37–38)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must strictly comply with Fitstop's standards, specifications, rules, requirements, and instructions regarding the use of the Fitstop Marks. The goodwill associated with the marks remains Fitstop's exclusive property, and any increase in goodwill during the franchise agreement benefits Fitstop. Upon expiration or termination of the Franchise Agreement, all rights to use the marks automatically revert to Fitstop without any cost or documentation.
Fitstop franchisees must modify or discontinue using any of the Marks and add new names, designs, logos, or commercial symbols to the Marks as Fitstop instructs. Fitstop may impose these changes whenever they believe it is advisable. Franchisees will receive written notice of any change and will be given a reasonable time to conform to Fitstop's directions, including changing signage, marketing displays, trade dress, and other advertising, all at the franchisee's sole expense.
Furthermore, franchisees cannot use any portion of Fitstop's Marks as part of their company name and, without prior written consent, as part of their trade name or "d/b/a". They cannot modify the Marks with unauthorized words, designs, or symbols, or use the Marks in connection with the sale of an unauthorized product or service. Franchisees must also notify Fitstop in writing if they become aware of any unauthorized use of the Marks and allow Fitstop to participate in any related litigation. Fitstop will control the defense and settlement of any proceeding and will indemnify, defend, and hold the franchisee harmless in connection with third-party claims arising solely out of the authorized use of any Marks in the manner Fitstop prescribes, provided the franchisee notifies Fitstop of the proceeding within three days and complies with Fitstop's directions.