What obligations does a Fly Fitness franchisee have regarding trademarks as described in Item 9 and Item 13?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees have several obligations regarding the brand's trademarks. The Franchise Agreement grants the franchisee the right to operate under the Fly Fitness trademarks. However, Fly Fitness does not have a federal registration for the FLY FITNESS mark, which means it lacks many legal benefits of a federally registered trademark. If the right to use the trademarks is challenged, franchisees may have to change to an alternative trademark, potentially increasing their expenses. Franchisees must immediately notify Fly Fitness of any infringement or challenges to the use of the Principal Marks or other trademarks. Fly Fitness and the Licensor will then decide on appropriate action and will indemnify the franchisee for expenses and damages arising from claims challenging the authorized use of trademarks, provided the franchisee gives timely notice and is in full compliance with the Franchise Agreement. Fly Fitness retains the right to control any legal proceedings related to the trademarks, and the franchisee must cooperate fully in defending or settling any litigation. Franchisees cannot contest Fly Fitness's or the Licensor's rights to the trademarks.
Franchisees must identify themselves as independent Fly Fitness franchisees in conjunction with any use of the Intellectual Property on items such as invoices, order forms, receipts, and contracts, and display a notice on the premises as designated by Fly Fitness. Franchisees cannot use the Intellectual Property to incur any obligations or indebtedness on behalf of Fly Fitness. Any item containing the Marks must be approved by Fly Fitness in writing before distribution or sale. Franchisees must notify Fly Fitness immediately of any apparent infringement or challenge to the use of any Intellectual Property or any claim by any person of any rights in any Intellectual Property, communicating only with Fly Fitness or its designated affiliates and counsel regarding such matters.
Upon termination or expiration of the Franchise Agreement, franchisees must immediately cease operating the Franchised Business and cannot identify themselves as a Fly Fitness owner, franchisee, or licensee. They must immediately and permanently stop using the Marks, any imitations, logos, copyrighted material, or other Intellectual Property, and de-identify the Franchised Business premises. This includes ceasing the use of all signs, advertising materials, and stationery displaying the Marks. Franchisees must also take action to cancel any assumed name registrations containing the Mark and provide evidence of compliance to Fly Fitness within five days after termination or expiration of the agreement.