What actions are Kidokinetics franchisees and principals prohibited from taking regarding the franchisor's intellectual property?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
other interest in or to the Intellectual Property.
- 13.2 No Interference. Neither Franchisee nor any Principal will take any action that would prejudice or interfere with the validity of Franchisor's or Licensor's rights with respect to the Intellectual Property. Nothing in this Agreement gives the Franchisee any right, title, or interest in or to any of the Intellectual Property or any of Franchisor's or Licensor's service marks, trademarks, trade names, trade dress, logos, copyrights or proprietary materials, except the right to use the Intellectual Property and the System in accordance with the terms and conditions of this Agreement for the operation of a Kidokinetics Business and only at or from the Kidokinetics Business Location or in approved advertising related to the Kidokinetics Business.
- 13.3 Goodwill. Franchisee understands and agrees that any and all goodwill arising from Franchisee's use of the Intellectual Property and the System inures solely and exclusively to the benefit of Franchisor and Licensor, and upon expiration or termination of this Agreement and the license granted, no monetary amount will be assigned as attributable to any goodwill associated with Franchisee's use of the Intellectual Property.
- 13.4 Validity. The Marks are valid and serve to identify the System and those who are authorized to operate under the System and Franchisee shall not contest the validity of, or Franchisor's or Licensor's interest in, the Intellectual Property or assist others to contest the validity of, or Franchisor's or Licensor's interest in, the Intellectual Property.
- 13.5 Infringement. Franchisee acknowledges that any unauthorized use of the Intellectual Property constitutes an infringement of Franchisor's or Licensor's rights in the Intellectual Property and an event of default hereunder.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, franchisees and their principals face several restrictions concerning the franchisor's intellectual property. They cannot take any actions that could harm or interfere with the validity of Kidokinetics' or its licensor's rights to its intellectual property. This means franchisees must respect and protect the brand's trademarks, service marks, trade names, trade dress, logos, copyrights, and proprietary materials.
The Kidokinetics franchise agreement explicitly states that franchisees do not gain any ownership or rights to the intellectual property beyond the limited right to use it for operating their Kidokinetics business. Franchisees are also prohibited from contesting the validity of Kidokinetics' intellectual property or assisting others in doing so. Unauthorized use of the intellectual property is considered an infringement of Kidokinetics' rights and a breach of the franchise agreement.
Furthermore, franchisees must assist Kidokinetics in securing and maintaining its intellectual property rights by providing necessary documents and information. Franchisees also cannot use the Kidokinetics marks as part of their corporate or legal name without approval and must follow Kidokinetics' instructions for trade name registrations. These measures ensure that Kidokinetics maintains control over its brand and system, protecting its value and reputation.
In practical terms, a Kidokinetics franchisee must be vigilant in protecting the brand's intellectual property and avoid any actions that could dilute or infringe upon it. This includes using the intellectual property only as authorized, reporting any potential infringements to Kidokinetics, and cooperating with Kidokinetics in protecting its rights. Failure to comply with these restrictions could result in legal action and termination of the franchise agreement.