Who owns the technology and intellectual property resulting from the Fly Fitness Brand Fund's activities?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3.5.
The Brand Fund will not be used to defray any of Franchisor's general operating expenses, except for reasonable administrative costs and overhead that Franchisor may incur in activities related to the administration and direction of the Brand Fund and such costs and expenses pursuant Section 13.3.4.
The Brand Fund and its earnings shall not otherwise inure to Franchisor's benefit except that any resulting technology and intellectual property shall be deemed the property of Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, any technology and intellectual property resulting from the Brand Fund is deemed the property of Fly Fitness. The Brand Fund is a national fund established by Fly Fitness for advertising, marketing, and brand development. Franchisees are required to contribute two percent (2%) of their weekly Gross Revenue to the Brand Fund.
Fly Fitness has sole discretion to approve or disapprove the creative concepts, materials, and media used in programs funded by the Brand Fund. This fund is intended to maximize public recognition and acceptance of the Fly Fitness marks and enhance the collective success of all franchised businesses operating under the Fly Fitness system.
Fly Fitness may use the Brand Fund to cover costs related to advertising, marketing, promotional materials, programs, campaigns, sales and marketing seminars, and training programs through various media channels. While the Brand Fund is intended to be perpetual, Fly Fitness can terminate it at any time, ensuring all monies are spent for advertising or promotional purposes or returned to contributors.