Who owns the principal trademark licensed to Fly To Fit franchisees?

According to Fly To Fit's 2024 Franchise Disclosure Document, the principal trademark licensed to franchisees is owned by Tina Murphy, the Owner of Fly To Fit. While Fly To Fit has been granted the exclusive right to sublicense these trademarks to franchisees throughout the United States through an Intercompany License Agreement, the underlying ownership remains with Tina Murphy. Fly To Fit does not have a federal registration for its principal trademark. Therefore, the trademark does not have as many legal benefits and rights as a federally registered trademark. If Fly To Fit's right to use the trademark is challenged, franchisees may have to change to an alternative trademark, which may increase their expenses. An application for registration on the Principal Register of the United States Patent and Trademark Office has been filed.

The Intercompany License Agreement between Fly To Fit and Tina Murphy is of perpetual duration and can only be modified by mutual consent. The agreement can be canceled by Fly To Fit's affiliate only 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 agreement specifies that even if the Intercompany License Agreement is terminated, a franchisee's franchise rights will remain unaffected.

Fly To Fit states that they will protect a franchisee's right to use the principal trademarks and defend against claims of infringement or unfair competition arising from the franchisee's use of the trademarks. If a franchisee uses Fly To Fit's trademarks in accordance with the franchise agreement, Fly To Fit will defend the franchisee (at Fly To Fit's expense) against any legal action by a third party alleging infringement and will indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably to the franchisee. However, the franchise agreement obligates franchisees to notify Fly To Fit of any use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to them, though Fly To Fit is not required to take affirmative action upon notification.