How can the Intercompany License Agreement for the Fly To Fit trademark 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, which grants Fly To Fit the exclusive right to sublicense its trademarks to franchisees, can only be modified by the mutual consent of both parties involved. This agreement is between Fly To Fit and Tina Murphy, the owner of the trademarks. The agreement is perpetual, meaning it has no set end date.
This requirement for mutual consent means that any changes to the agreement must be agreed upon by both Fly To Fit and Tina Murphy. This protects both parties, ensuring that neither can unilaterally alter the terms of the agreement. For a potential franchisee, this provides some assurance that the terms governing Fly To Fit's right to use and sublicense the trademarks are stable and not subject to arbitrary changes by one party.
However, the agreement can be canceled by Fly To Fit's affiliate 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. It is important to note that even if the Intercompany License Agreement is terminated, the franchise rights of the franchisees will remain unaffected, according to the document.