Who bears the expense of modifying or stopping the use of any Mark if Fly Fitness requires it?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right to substitute different Marks if we can no longer use the current Mark, or if we determine that substitution of different Marks will be beneficial to the System. In such event, we may require you, at your expense, to modify or stop using any Mark, including the Principal Marks, or to use one or more additional or substitute Marks.
Source: Item 13 — TRADEMARKS (FDD pages 31–32)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee bears the expense of modifying or stopping the use of any mark if Fly Fitness requires it. Fly Fitness reserves the right to substitute different marks if they can no longer use the current mark or if they determine that a substitution would benefit the system.
In such cases, Fly Fitness may require the franchisee, at the franchisee's own expense, to modify or discontinue the use of any mark, including the Principal Marks, or to use one or more additional or substitute marks. This means that if Fly Fitness decides to change its branding or is forced to do so, the franchisee will be responsible for covering the costs associated with updating signage, marketing materials, and any other items that display the old mark.
This is a potentially significant expense for franchisees, as rebranding can be costly. Franchisees should factor this potential cost into their financial projections and be aware of the risk that they may have to pay to update their branding if Fly Fitness decides to make changes. It is important to note that while Fly Fitness does offer indemnification for expenses and damages arising from claims challenging the authorized use of trademarks, this does not cover the cost of rebranding due to a decision made by Fly Fitness itself.