Is a Fly Fitness franchisee allowed to register or attempt to register the intellectual property in their name?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
nd 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.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are not allowed to contest the validity of Fly Fitness's intellectual property. The agreement specifies in section 14.2 that neither the franchisee nor any principal can take any action that would prejudice or interfere with the validity of Fly Fitness's or its licensor's rights regarding the intellectual property.
Furthermore, the franchise agreement clarifies that franchisees do not gain any rights, titles, or interests in any of Fly Fitness's service marks, trademarks, trade names, trade dress, logos, copyrights, or proprietary materials. The only right granted is the ability to use the intellectual property and system according to the agreement's terms for operating a franchised business at its designated location or in approved advertising related to the franchised business.
Upon termination or expiration of the franchise agreement, the franchisee must take necessary actions to cancel any assumed name or equivalent registration that contains Fly Fitness's mark or any other service mark or trademark. The franchisee is required to provide Fly Fitness with evidence of compliance within five days after termination or expiration of the agreement, ensuring no continued association or claim to the brand's intellectual property.