Who has complete discretion to take action regarding infringement of Kidokinetics intellectual property?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Franchisee shall provide Franchisor or Licensor with all assignments, affidavits, documents, information and assistance Franchisor or Licensor reasonably requests to fully vest in Franchisor or Licensor all such rights, title and interest in and to the Intellectual Property, including all such items as are reasonably requested by Franchisor or Licensor to register, maintain and enforce such rights in the Intellectual Property.
- 13.6 Substitution.
Franchisor reserves the right to substitute different Marks for use in identifying the System and the Kidokinetics Business if the current Marks no longer can be used by Franchisor, or if Franchisor, in its sole discretion, determines that substitution of different Marks will be beneficial to the System.
In such event, Franchisor will require Franchisee, at Franchisee's expense, to discontinue or modify Franchisee's use of any of the Marks or to use one or more additional or substitute Marks no later than 10 days after notification thereof.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the franchisee acknowledges that any unauthorized use of the intellectual property constitutes an infringement of Kidokinetics' or its licensor's rights. The franchisee is required to provide Kidokinetics or its licensor with any assistance, documents, and information that they reasonably request to protect their intellectual property rights.
Kidokinetics retains significant control over its intellectual property. The franchisee cannot take any actions that would harm the validity of Kidokinetics' or its licensor's rights regarding the intellectual property. The franchisee's use of the intellectual property benefits Kidokinetics and its licensor, and upon termination of the agreement, no monetary value will be assigned to any goodwill associated with the franchisee's use of the intellectual property.
Kidokinetics reserves the right to substitute different marks for use in identifying the Kidokinetics business if the current marks can no longer be used or if Kidokinetics determines that a substitution of different marks will benefit the system. In such an event, the franchisee will be required to discontinue or modify their use of any of the marks or to use one or more additional or substitute marks at their own expense, no later than 10 days after notification.