What happens if the right to use the Fly Fitness trademarks is challenged?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
With regards to the FLY FITNESS mark, we do not have a federal registration. Therefore, our FLY FITNESS mark does not have many legal benefits and rights as a federally registered trademark. If our right to use any of these trademarks is challenged, you may have to change to an alternative trademark, which may increase your expenses.
You must notify us immediately when you learn about an infringement of or challenge to your use of the Principal Marks or other trademarks. Licensor and we will take any action we think appropriate and, if you have given us timely notice and are in full compliance with the Franchise Agreement, we will indemnify you for all expenses and damages arising from any claim challenging your authorized use of the Principal Marks or other trademarks. Licensor and we have the right to control any administrative proceedings or litigation involving the Principal Marks or other trademarkslicensed by us to you. You must cooperate fully with Licensor and us in defending and/or settling the litigation.
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.
You must not directly or indirectly contest Licensor's right, or our right, to the Principal Marks or other trademarks.
Source: Item 13 — TRADEMARKS (FDD pages 31–32)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if the right to use the Fly Fitness trademarks is challenged, several actions and potential consequences could arise. Because the FLY FITNESS mark does not have a federal registration, it lacks many legal benefits. Fly Fitness states that a franchisee may have to change to an alternative trademark, which may increase their expenses.
The franchisee must notify Fly Fitness immediately upon learning of any infringement or challenge to the use of the trademarks. Fly Fitness and its licensor will then decide on appropriate action. If the franchisee provides timely notice and is in full compliance with the Franchise Agreement, Fly Fitness will indemnify the franchisee for all expenses and damages arising from any claim challenging the authorized use of the trademarks. Fly Fitness and its licensor retain the right to control any administrative proceedings or litigation involving the trademarks and the franchisee must cooperate fully in defending or settling any litigation.
Fly Fitness also reserves the right to substitute different marks if the current mark can no longer be used or if a substitution is deemed beneficial to the system. In such cases, Fly Fitness may require the franchisee, at the franchisee's expense, to modify or stop using any mark, including the Principal Marks, or to use one or more additional or substitute marks. The franchisee is prohibited from directly or indirectly contesting the licensor's or Fly Fitness's right to the trademarks.