factual

Does the Fly Fitness franchise agreement include a section on 'Intellectual Property'?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

[Item 22: CONTRACTS]

14. INTELLECTUAL PROPERTY.

14.1 Ownership.

  • 14.1.1. Franchisee expressly understands and acknowledges that Fly A Fitness Revolution, LLC, or its successor, ("Licensor") is the record owner of the Marks. Franchisor holds the exclusive right to license the Marks to franchisees of the System for use pursuant to the System. Franchisee further expressly understands and acknowledges that Franchisor claims copyrights on certain written material used in the System, including but not limited to, forms, advertisements, promotional materials, photographs, social media content, the Website, and the Manual, whether or not Franchisor has filed for copyrights thereto with the U.S. Copyright Office. The Marks and copyrights are hereafter together referred to as the "Intellectual Property".
  • 14.1.2. As between Franchisor and Franchisee, Licensor and Franchisor are the owner of all right, title and interest in and to the Intellectual Property and the goodwill associated with and symbolized by them.

  • 14.2.

No Interference.

Neither Franchisee nor any Principal shall take any action that would prejudice or interfere with the validity of Franchisor's or Licensor's rights with respect to the Intellectual Property.

Nothing in this Agreement shall give the Franchisee any right, title, or interest in or to any of the Intellectual Property or any of Franchisor's or Licensor's service marks, trademarks, trade names, trade dress, logos, copyrights or proprietary materials, except the right to use the Intellectual Property and the System in accordance with the terms and conditions of this Agreement for the operation of a Franchised Business and only at or from the Franchised Business location or in approved advertising related to the Franchised Business.

  • 14.3.

Goodwill.

Franchisee understands and agrees that any and all goodwill arising from Franchisee's use of the Intellectual Property and the System shall inure solely and exclusively to the benefit of Franchisor and Licensor, and upon expiration or termination of this Agreement and the license herein granted, no monetary amount shall be assigned as attributable to any goodwill associated with Franchisee's use of the Intellectual Property.


[Item 22: CONTRACTS]

  • 14.4.

Validity.

Franchisee shall not contest the validity of, or Franchisor's or Licensor's interest in, the Intellectual Property or assist others to contest the validity of, or Franchisor's or Licensor's interest in, the Intellectual Property.

  • 14.5.

Infringement.

Franchisee acknowledges that any unauthorized use of the Intellectual Property shall constitute an infringement of Franchisor's or Licensor's rights in the Intellectual Property and a material event of default hereunder.

Franchisee shall provide Franchisor or Licensor with all assignments, affidavits, documents, information and assistance Franchisor or Licensor reasonably requests to fully vest in Franchisor or Licensor all such rights, title, and interest in and to the Intellectual Property, including all such items as are reasonably requested by Franchisor or Licensor to register, maintain, and enforce such rights in the Intellectual Property.

  • 14.6.

Substitution.

Franchisor reserves the right to substitute different Marks for use in identifying the System and the Franchised Business, if it in its sole discretion, determines that substitution of different Marks will be beneficial to the System.

Franchisor will not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any additions, modifications, substitutions, or discontinuation of the Marks.

Franchisee covenants not to commence or join in any litigation or other proceeding against Franchisor for any of these expenses, losses, or damages.

  • 14.7.

Franchisee's Use of the Intellectual Property.

With respect to Franchisee's use of the Intellectual Property pursuant to this Agreement, Franchisee further agrees that:

  • 14.7.1 Unless otherwise authorized or required by Franchisor, Franchisee shall advertise the Franchised Business only under the Mark "Fly Fitness" and design.

Franchisee shall not use the Marks, or any portions, variations, or derivatives thereof, as part of its corporate or other legal name.

All fictitious names used by Franchisee shall bear the designation "a franchisee of Fly Fitness Franchise, L.L.C.".


[Item 22: CONTRACTS]

All fictitious names used by Franchisee shall bear the designation "a franchisee of Fly Fitness Franchise, L.L.C.".

  • 14.7.2.

Franchisee shall identify itself as the owner of the Franchised Business and as an independent Fly Fitness franchisee in conjunction with any use of the Intellectual Property, including, but not limited to, uses on invoices, order forms, receipts, and contracts, as well as the display of a notice in such content and form and at such conspicuous locations on the premises of the Franchised Business as Franchisor may designate in writing.

  • 14.7.3.

Franchisee shall not use the Intellectual Property to incur any obligation or indebtedness on behalf of Franchisor.

  • 14.7.4.

Any item offered by Franchisee that contains the Marks, must be approved by Franchisor in writing prior to being distributed or sold by Franchisee and such approval may be granted or denied in Franchisor's sole and absolute discretion.

  • 14.8.

Claims.

Franchisee shall notify Franchisor immediately via both email and telephone, of any apparent infringement of or challenge to Franchisee's use of any Intellectual Property and of any claim by any person of any rights in any Intellectual Property.

Franchisee shall not communicate with any person other than Franchisor or any designated affiliate thereof, their counsel and Franchisee's counsel in connection with any such infringement, challenge, or claim.

Franchisor shall have complete discretion to take such action as it deems appropriate in connection with the foregoing, and the right to control exclusively, or to delegate control to any of its affiliates of, any settlement, litigation or other proceeding arising out of any such alleged infringement, challenge or claim or otherwise relating to any Intellectual Property.

Franchisee agrees to execute any and all instruments and documents, render such assistance, and do such acts or things as may, in the opinion of Franchisor, reasonably be necessary or advisable to protect and maintain the interests of Franchisor or any other person or entity in any litigation or other proceeding or to otherwise protect and maintain the interests of Franchisor or any other interested party in the Intellectual Property.

Source: Item 22 — CONTRACTS (FDD pages 44–45)

What This Means (2024 FDD)

Yes, according to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement includes a section specifically addressing 'Intellectual Property.' Section 14 of the franchise agreement is dedicated to intellectual property, covering various aspects such as ownership, usage, and protection of Fly Fitness's intellectual property. This section clarifies that Fly A Fitness Revolution, LLC owns the Marks and that Fly Fitness holds the exclusive right to license the Marks to franchisees. The Intellectual Property includes trademarks, copyrights on written materials, forms, advertisements, promotional materials, photographs, social media content, the Website, and the Manual.

The franchise agreement emphasizes that the franchisee gains no ownership of the intellectual property but only the right to use it according to the agreement's terms. Franchisees are prohibited from actions that could harm the validity of Fly Fitness's intellectual property rights. All goodwill arising from the franchisee's use of the Intellectual Property benefits Fly Fitness and Licensor. Upon termination of the agreement, no monetary value is assigned to any goodwill associated with the franchisee's use of the Intellectual Property.

The agreement also outlines specific requirements for franchisees regarding the use of the Intellectual Property. Franchisees must advertise the Franchised Business only under the mark "Fly Fitness" and must identify themselves as a franchisee of Fly Fitness in conjunction with any use of the Intellectual Property. Fly Fitness retains the right to substitute different Marks and is not liable for any expenses or losses incurred by the franchisee as a result of these changes. Franchisees are required to notify Fly Fitness immediately of any apparent infringement or challenge to the use of any Intellectual Property and must follow Fly Fitness's instructions in handling such claims.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.