What constitutes an infringement of Fly Fitness's rights in the Intellectual Property?

According to Fly Fitness's 2024 Franchise Disclosure Document, any unauthorized use of its Intellectual Property by a franchisee is considered an infringement of Fly Fitness's rights. This includes the use of trademarks, service marks, trade names, trade dress, logos, copyrights, and proprietary materials outside the scope of the franchise agreement. The franchisee acknowledges Fly Fitness (or its licensor) as the owner of all rights, titles, and interests in the Intellectual Property and associated goodwill.

Specifically, franchisees must advertise their Fly Fitness business only under the mark "Fly Fitness" unless otherwise authorized. They cannot use the marks or any variations as part of their corporate or legal name, but must identify themselves as a franchisee of Fly Fitness Franchise, L.L.C. All items containing Fly Fitness's marks that are offered by the franchisee must be approved in writing by Fly Fitness before distribution or sale.

Franchisees are also obligated to notify Fly Fitness immediately of any apparent infringement or challenge to the use of any Intellectual Property. Fly Fitness has complete discretion over any action taken regarding infringements, challenges, or claims related to its Intellectual Property, including settlements and litigation. The franchisee must assist Fly Fitness in protecting its interests in the Intellectual Property by executing necessary documents and providing assistance as needed. Failure to comply with these stipulations would not only constitute a breach of contract but also an infringement on Fly Fitness's intellectual property rights, potentially leading to legal repercussions and termination of the franchise agreement.