Under what circumstances must a Fly Fitness franchisee immediately discontinue the use of a Mark?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.1.
Franchisee's Obligations.
Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
18.1.1. immediately cease to operate the Franchised Business, and shall not thereafter, directly, or indirectly identify himself, herself or itself as a Fly Fitness owner, franchisee, or licensee;
18.1.2. immediately and permanently (i) cease to use the Marks, any imitation of any Mark, logos, copyrighted material, or other Intellectual Property, Confidential Information, other confidential or proprietary material or indicia of a Fly Fitness outlet, (ii) cease to use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Franchisor's affiliates, or the System and (iii) de-identify the Franchised Business premises.
In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms, and any other articles, which display the Marks;
- 18.1.3. take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee must immediately cease using the Marks upon termination or expiration of the Franchise Agreement. This obligation extends not only to the franchisee but also to each principal involved in the franchise. Termination encompasses voluntary, involuntary, or natural expiration of the agreement.
Specifically, the franchisee must stop operating the Franchised Business and cannot identify themselves as a Fly Fitness owner, franchisee, or licensee. They must immediately and permanently discontinue using the Marks, any imitations thereof, logos, copyrighted material, or other intellectual property associated with Fly Fitness. This includes refraining from using any trade name, service mark, or commercial symbol that suggests a past or current association with Fly Fitness. The franchisee is also required to de-identify the Franchised Business premises, removing all signs, billboards, advertising materials, displays, stationery, and forms that display the Marks.
Furthermore, the franchisee is obligated to take necessary actions to cancel any assumed name registrations that contain the Mark or any other service mark or trademark of Fly Fitness. Evidence of compliance with this cancellation must be provided to Fly Fitness within five days after the termination or expiration of the Franchise Agreement. This ensures that the franchisee completely disassociates from the Fly Fitness brand upon the agreement's end.
These post-termination obligations are standard in franchising to protect the franchisor's brand and intellectual property. A prospective Fly Fitness franchisee should understand these requirements and be prepared to fully comply with them upon the termination or expiration of their franchise agreement.