Under the Fly To Fit franchise 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.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the franchise agreement involves Fly To Fit Franchise, LLC licensing the Marks and the System to the franchisee. This allows the franchisee to develop and operate a Fly To Fit business, subject to the terms and conditions outlined in the agreement. The System encompasses various elements, including methods, procedures, and standards for business operation, plans, specifications, equipment, signage, trade dress, particular products and services, the Marks, training programs, business knowledge, marketing plans and concepts, and other mandatory or optional elements determined by Fly To Fit Franchise.
Fly To Fit 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 also defines a protected territory, within which it will not establish or license another business selling similar goods or services under the same trademarks. However, Fly To Fit retains the right to establish and license businesses outside this territory, operate businesses under different brand names, and sell products and services through other distribution channels, including the internet.
The franchisee's rights to use trademarks, service marks, and logos are limited to those authorized by Fly To Fit. The franchisee must use the specified Marks in the manner required by Fly To Fit, and all goodwill associated with the Marks, including any goodwill arising from the franchisee's operation, will benefit Fly To Fit exclusively. Fly To Fit retains 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. This ensures Fly To Fit maintains control over its brand and system standards, while the franchisee operates within the defined framework.