Who owns the trademarks described in Item 13 for the Fly To Fit franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
rights in a trademark.
Agreements
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.
Protection of Rights
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We
have the right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third-party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 31–33)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the trademarks described in Item 13 are owned by Tina Murphy, the Owner of Fly To Fit. While Fly To Fit itself has been granted the exclusive right to sublicense these trademarks to franchisees throughout the United States, the underlying ownership remains with Tina Murphy. This arrangement is formalized through an Intercompany License Agreement between Fly To Fit and Tina Murphy.
The Intercompany License Agreement is of perpetual duration and can only be modified by mutual consent of both parties. The agreement can be canceled by Fly To Fit only if the company 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 it is terminated, a franchisee's rights will remain unaffected.
It is important to note that Fly To Fit does not have a federal registration for its principal trademark. As a result, the trademark may not have as many legal benefits and rights as a federally registered trademark. If the right to use the trademark is challenged, franchisees may have to change to an alternative trademark, which may increase their expenses. However, an application for registration on the Principal Register of the United States Patent and Trademark Office has been filed.
Fly To Fit states that they will defend franchisees (at their expense) against any legal action by a third-party alleging infringement by the franchisee's use of the trademark, and they will indemnify franchisees for expenses and damages if the legal action is resolved unfavorably to them, provided the trademarks are used in accordance with the franchise agreement. Fly To Fit may also require franchisees to modify or discontinue using a trademark, at the franchisee's expense.