What is the duration of the Intercompany License Agreement for the Fly To Fit trademarks?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Tina Murphy, our Owner, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Tina Murphy, we have been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement is of perpetual duration. It may be modified only by mutual consent of the parties. It may be canceled by our affiliate only if (1) we materially misuse the trademarks and fail to correct the misuse, or (2) we discontinue commercial use of the trademarks for a continuous period of more than one year. The Intercompany License Agreement specifies that if it is ever terminated, your franchise rights will remain unaffected.
Source: Item 13 — TRADEMARKS (FDD pages 31–33)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Intercompany License Agreement between Fly To Fit and Tina Murphy, the owner of the trademarks, grants Fly To Fit the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement has a perpetual duration, meaning it continues indefinitely unless specific conditions for modification or cancellation are met.
The agreement can only be modified through mutual consent of both parties, ensuring that neither Fly To Fit nor Tina Murphy can unilaterally alter the terms. However, the agreement can be canceled by Fly To Fit's affiliate under two specific circumstances: if Fly To Fit materially misuses the trademarks and fails to correct the misuse, or if Fly To Fit discontinues commercial use of the trademarks for a continuous period of more than one year.
Importantly, the Intercompany License Agreement includes a provision that protects franchisees in the event of termination. Specifically, the agreement states that if it is ever terminated, the franchisee's rights will remain unaffected. This clause provides a level of security for franchisees, ensuring that their ability to operate under the Fly To Fit brand is not jeopardized by any potential issues between Fly To Fit and the trademark owner.