How can the Intercompany License Agreement for the Fly To Fit franchise be modified?
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. This agreement has a perpetual duration.
The FDD specifies that the Intercompany License Agreement can only be modified by the mutual consent of both parties involved: Fly To Fit and Tina Murphy. This means that any changes to the agreement require both parties to agree on the modifications.
Additionally, the Intercompany License Agreement can be canceled by Fly To Fit's affiliate under specific conditions: (1) if Fly To Fit materially misuses the trademarks and fails to correct the misuse, or (2) if Fly To Fit discontinues commercial use of the trademarks for a continuous period of more than one year. However, the agreement also states that if it is ever terminated, the franchisee's franchise rights will remain unaffected, providing some security for franchisees. This arrangement ensures that franchisees can continue operating their Fly To Fit studios even if the Intercompany License Agreement is terminated.