Who has the right to control administrative proceedings or litigation involving the Fly Fitness Principal Marks?
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.
Source: Item 13 — TRADEMARKS (FDD pages 31–32)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness and its licensor have the right to control any administrative proceedings or litigation involving the Principal Marks or other trademarks licensed to the franchisee. This means that Fly Fitness, not the franchisee, will direct the legal strategy and make decisions in any legal matters concerning the brand's trademarks.
For a prospective Fly Fitness franchisee, this indicates that while they are obligated to notify Fly Fitness immediately of any infringement or challenges to the use of the Principal Marks, they do not have the authority to independently pursue legal action to protect the brand's trademarks. Instead, Fly Fitness will take action it deems appropriate. The franchisee is required to cooperate fully with Fly Fitness and the licensor in defending or settling any litigation.
This arrangement is typical in franchising, as it allows the franchisor to maintain consistent brand standards and legal strategies across all franchise locations. However, it also means that the franchisee must rely on Fly Fitness to protect the trademarks effectively. If Fly Fitness fails to act decisively, the franchisee's business could be negatively impacted. Furthermore, the franchisee is prohibited from contesting the licensor's or Fly Fitness's right to the Principal Marks or other trademarks.
The FDD also states that if the franchisee provides timely notice of any challenges to the trademarks 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 Principal Marks or other trademarks. This provides some financial protection for the franchisee in the event of trademark-related legal issues.