Does Fitstop own any registered patents material to the franchise?

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop does not own any registered patents or pending patent applications that are material to the franchise. However, Fitstop and its affiliate, Fitstop IP Pty Limited, claim common law copyright and trade secret protection for aspects of the franchise system. These protected elements include manuals, training materials, advertising, and business materials. Fitstop IP Pty Limited owns these intellectual property rights and licenses them to Fitstop.

Fitstop emphasizes the importance of maintaining the confidentiality of trade secrets and copyrighted materials. Franchisees are required to ensure that their designated manager and personnel with access to confidential information sign a Confidentiality and Non-Competition Agreement. This agreement identifies Fitstop as a third-party beneficiary, granting them independent enforcement rights. This is a common practice in franchising to protect the franchisor's intellectual property and system.

The Franchise Agreement also addresses intellectual property improvements. If a franchisee develops any new concept, process, or improvement related to the Fitstop system, they must notify Fitstop and provide all related information without compensation. Fitstop will become the sole owner of any patents, patent applications, trademarks, copyrights, and other intellectual property rights related to these new concepts. Franchisees are required to assign any rights they may have in these new concepts to Fitstop, including the right to modify them. This clause ensures that any innovations within the franchise network benefit the entire system, but it also means franchisees will not own the rights to their own innovations.