What is Fitstop's recourse if a franchisee poses an imminent risk of violating federally protected intellectual property rights?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
iate as set forth herein may be specifically enforced by us. Each Party will bear its own cost of mediation, with you and us equally sharing the mediator fees. This agreement to mediate will survive any termination or expiration of this Agreement. The Parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 19.2 ifsuch controversy, dispute, or claim concerns an allegation that a Party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, System, or in any Confidential Information or other 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; and (vi) to prohibit any act or omission by you or your representatives that constitutes a violation of applicable law, threatens the Franchise System or threatens other System franchisees.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop is not required to attempt to mediate a dispute if it concerns an allegation that a franchisee poses an imminent risk of violating federally protected intellectual property rights in the Proprietary Marks, System, or in any Confidential Information or other intellectual property rights associated with the same.
Fitstop can seek restraining orders or temporary or permanent injunctions in any court of competent jurisdiction, without bond. This is in addition to any other relief available at law or equity. The injunctions can enforce provisions of the Franchise Agreement relating to the unauthorized use of Proprietary Marks and Confidential Information, disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Proprietary Marks, and disputes and controversies involving enforcement of Fitstop's rights with respect to confidentiality under the Agreement.
The franchisee's only remedy if such an injunction is entered will be the dissolution of the injunction, should they prevail in such a proceeding. This means that Fitstop can immediately seek legal intervention to protect its intellectual property without going through mediation, and the franchisee bears the burden of dissolving the injunction if they believe it was wrongly issued.