Who owns the Fitstop trademarks as of the Issue Date of the FDD?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
As of the Issue Date our affiliate, Fitstop IP Pty. Ltd. (the "TM Owner"), owns the following marks that are registered on the Principal Register of the United States Patent and Trademark Office ("USPTO"):
| Mark | Registration No. | Registration Date |
|---|---|---|
| FITSTOP® | 7,077,393 | June 13, 2023 |
| FITSTOP® | 7,288,609 | January 23, 2024 |
As of the Issue Date, we have worked with TM Owner to file any affidavits and other documents with the USPTO to maintain the federal registrations described above.
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.
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.
Source: Item 13 — TRADEMARKS (FDD pages 37–38)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the trademark owner for the Fitstop brand is Fitstop IP Pty. Ltd., which is identified as an affiliate of the franchisor. Fitstop grants franchisees a limited, non-exclusive license to use their proprietary marks, such as the primary mark FITSTOP®, provided the marks are used as outlined in the Franchise Agreement and the manuals.
As of the issue date of the FDD, Fitstop IP Pty. Ltd. owns the registered FITSTOP® trademarks in the United States. These trademarks are registered with the United States Patent and Trademark Office (USPTO). The specific registration numbers and dates are listed in the FDD, with registration numbers 7,077,393 registered on June 13, 2023, and 7,288,609 registered on January 23, 2024.
Fitstop maintains a perpetual, royalty-free license agreement with Fitstop IP Pty. Ltd., established in 2022, which allows Fitstop to use and license the registered marks to its franchisees. This agreement ensures that even if the primary agreement between Fitstop and Fitstop IP Pty. Ltd. is terminated, the trademark owner will continue to license the proprietary marks directly to the System franchisees. Franchisees must adhere strictly to Fitstop's standards and guidelines regarding the use of the marks, and all goodwill associated with the marks remains the exclusive property of Fitstop.