Are disputes based on the Lanham Act subject to mediation or arbitration for Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.4 Exceptions.
Notwithstanding the requirements of Sections 10.2 or 10.3, the following claims shall not be subject to mediation or arbitration:
10.4.1 Franchisor's claims for injunctive or other extraordinary relief;
10.4.2 disputes and controversies arising from the Sherman Act, the Clayton Act or any other federal or state antitrust law;
10.4.3 disputes and controversies based upon or arising under the Lanham Act, as now or hereafter amended, relating to the ownership or validity of the Marks; and
10.4.4 enforcement of Developer's post-termination obligations, including but not limited to, Developer's non-competition covenants.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, disputes and controversies based upon or arising under the Lanham Act, as now or hereafter amended, relating to the ownership or validity of the Marks, are not subject to mediation or arbitration. This means that Fly Fitness franchisees are not required to resolve such disputes through these alternative methods. Instead, Fly Fitness would likely pursue resolution through the court system.
This exception to mediation and arbitration is significant because disputes involving trademarks and intellectual property rights can have a substantial impact on the Fly Fitness brand and its franchisees. By reserving the right to litigate these issues, Fly Fitness retains greater control over how such disputes are resolved and can protect its brand identity more effectively.
It is important for prospective Fly Fitness franchisees to understand which types of disputes are subject to mediation or arbitration and which are not. This knowledge can help them anticipate potential legal costs and understand the dispute resolution process in the event of a disagreement with the franchisor. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement.