Under the Fly To Fit agreement, what is being licensed to the franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement is made between Fly To Fit Franchise, LLC, a Delaware Limited Liability Company ("Fly To Fit Franchise"), and Franchisee effective as of the date signed by Fly To Fit Franchise (the "Effective Date").
Background Statement:
- A. Fly To Fit Franchise and its affiliate Fly To Fit Bungee Fitness, LLC, have created and own a system (the "System") for developing and operating a fitness studio offering bungee fitness classes, modified for all fitness levels avoiding joint stress, under the trade name "Fly To Fit".
- B. The System includes (1) methods, procedures, and standards for developing and operating a Fly To Fit business, (2) plans, specifications, equipment, signage and trade dress for Fly To Fit businesses, (3) particular products and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by Fly To Fit Franchise from time to time.
- C. The parties desire that Fly To Fit Franchise license the Marks and the System to Franchisee for Franchisee to develop and operate a Fly To Fit business on the terms and conditions of this Agreement.
ARTICLE 1. DEFINITIONS
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit Franchise, LLC licenses the Marks and the System to the franchisee. The System encompasses methods, procedures, and standards for operating a Fly To Fit business, including plans, specifications, equipment, signage, and trade dress. It also includes particular products and services, training programs, business knowledge, and marketing plans.
This license grants the franchisee the right to operate a Fly To Fit business solely at the specified location. The franchisee is obligated to develop, open, and operate the Fly To Fit business at this location for the entire term of the agreement. Fly To Fit retains the right to establish or license other businesses outside the franchisee's territory, even if they are in close proximity or impact the franchisee's business. Fly To Fit also retains the right to operate or license businesses that do not use the Fly To Fit brand name and to sell or license products and services through other distribution channels, including the internet, within the franchisee's territory.
The franchisee's rights to use trademarks, service marks, or logos are limited to those specified by Fly To Fit. The franchisee must use the marks in the manner required by Fly To Fit and acknowledges that they have no rights in the marks beyond their use in compliance with the agreement. All goodwill associated with the marks, including any goodwill arising from the franchisee's operation of the business, will benefit Fly To Fit exclusively. Fly To Fit has the right to add, modify, or discontinue any marks used under the System, and the franchisee must comply with these changes at their own expense within a reasonable time.