What constitutes an infringement of the Kidokinetics franchisor's rights in the 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, any unauthorized use of the Intellectual Property constitutes an infringement of Kidokinetics' or its licensor's rights. This unauthorized use is also considered an event of default under the franchise agreement.
Kidokinetics franchisees must only use the marks that Kidokinetics designates and in the manner it authorizes. The marks can only be used for the operation of the Kidokinetics business at the approved location and for advertising the Kidokinetics business. Franchisees cannot use the marks as part of their corporate or legal name without prior approval from Kidokinetics.
Furthermore, franchisees must identify themselves as the owner of the Kidokinetics business and as an independent franchisee in conjunction with any use of the Intellectual Property. This includes uses on invoices, order forms, receipts, and contracts, as well as displaying a notice in a conspicuous location. Franchisees are also prohibited from using the Intellectual Property to incur any obligation or indebtedness on behalf of Kidokinetics. Any merchandise offered by the franchisee that utilizes the marks must be approved by Kidokinetics in writing before being sold.
In addition to the franchise agreement, employees, independent contractors, agents, representatives, or suppliers of the franchisee agree not to use the Intellectual Property in any business or capacity other than for the benefit of the Kidokinetics business operated by the franchisee or in any way detrimental to Kidokinetics or to the franchisee. They must maintain the confidentiality of the Intellectual Property at all times, not make unauthorized copies of documents containing any Intellectual Property, and take reasonable steps to prevent unauthorized use or disclosure of the Intellectual Property.