How can a Kidokinetics franchisee use the Marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee's Use of the Intellectual Property. With respect to Franchisee's use of the Intellectual Property pursuant to this Agreement, Franchisee further agrees that:
- 13.7.1 Unless otherwise authorized or required by Franchisor, Franchisee shall advertise the Kidokinetics Business only under the Mark "Kidokinetics ®," and design. Franchisee must use only the Marks that Franchisor designates, and must use them only in the manner Franchisor authorizes and permits. Franchisee must use the Marks only for the operation of the Kidokinetics Business at the location approved by Franchisor and for advertising the Kidokinetics Business. Franchisee shall not use the Marks as part of its corporate or other legal name, and shall obtain the Franchisor's approval of its corporate or other legal name prior to filing it with the applicable
state authority. Franchisee shall comply with Franchisor's instructions in filing and maintaining the requisite trade name or fictitious name registrations, and shall execute any documents deemed necessary by Franchisor or its counsel to obtain protection of the Marks or to maintain their continued validity and enforceability. All fictitious names used by Franchisee will bear the designation "a franchisee of Kidokinetics Franchisee LLC". Franchisee must promptly register at the office of each county in which Franchisee's Kidokinetics Business operates, or at such other public office as provided for by the laws of the state in which Franchisee's Kidokinetics Business is located, as doing business under such assumed business name.
- 13.7.2 Franchisee shall identify itself as the owner of the Kidokinetics Business and as an independent Kidokinetics Franchise LLC franchisee in conjunction with any use of the Intellectual Property, including, but not limited to, uses on invoices, order forms, receipts and contracts, as well as the display of a notice in such content and form and at conspicuous locations or on any vehicle as Franchisor may designate in writing.
- 13.7.3 Franchisee shall not use the Intellectual Property to incur any obligation or indebtedness on behalf of Franchisor.
- 13.7.4 Any merchandise offered by Franchisee that utilizes the Marks, must be approved by Franchisor in writing prior to being sold by Franchisee and such approval may be granted or denied in Franchisor's sole and absolute discretion.
- 13.7.5 The license of the Marks granted to Franchisee hereunder is nonexclusive and Franchisor retains the right, among others, (i) to use the Marks itself in connection with selling products and services; (ii) to grant other licenses for the Marks; and (iii) to develop and establish other systems using the Marks, similar proprietary marks, or any other proprietary marks, and to grant licenses thereto without providing any rights therein to Franchisee.
- Claims, Franchisee shall notify Franchisor immediately by telephone, and in writing, of any apparent infringement of or challenge to Franchisee's use of any Intellectual Property and of any claim by any person of any rights in any Intellectual Property. Franchisee shall promptly notify Franchisor and cooperate fully in defending or settling such litigation. Franchisee may not communicate with any person other than Franchisor or any designated affiliate thereof, their counsel and Franchisee's counsel in connection with any such infringement, challenge or claim.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee's use of the Marks is subject to several specific guidelines and restrictions. The franchisee must advertise the Kidokinetics Business only under the mark "Kidokinetics ®," and design, unless otherwise authorized or required by Kidokinetics. The franchisee is obligated to use only the Marks designated by Kidokinetics and in the manner authorized and permitted by Kidokinetics. The Marks can only be used for the operation of the Kidokinetics Business at the approved location and for advertising the Kidokinetics Business.
The franchisee cannot use the Marks as part of their corporate or other legal name without prior approval from Kidokinetics. They must also comply with Kidokinetics's instructions for trade name or fictitious name registrations. All fictitious names used by the franchisee must bear the designation "a franchisee of Kidokinetics Franchisee LLC". The franchisee must also register the assumed business name at the relevant county or public office. In conjunction with any use of the Intellectual Property, the franchisee must identify itself as the owner of the Kidokinetics Business and as an independent Kidokinetics Franchise LLC franchisee on items such as invoices, order forms, receipts, and contracts, as well as display a notice in a conspicuous location.
The franchisee cannot use 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. The license of the Marks granted to the franchisee is nonexclusive, and Kidokinetics retains the right to use the Marks itself, grant other licenses for the Marks, and develop other systems using the Marks or similar proprietary marks. Franchisees must prominently display approved signs using the Marks at their Kidokinetics Business Location and on service vehicles. All advertising programs must be conducted in a dignified manner that will not detract from the reputation of the System or the Marks.
These stipulations ensure that the Kidokinetics brand is consistently and appropriately represented, protecting its reputation and goodwill. Franchisees must adhere strictly to these guidelines to avoid breaching their franchise agreement. The approval requirements for advertising and merchandise are typical in franchising, allowing Kidokinetics to maintain quality control and brand consistency across all franchise locations. The non-exclusive nature of the license is also standard, as it allows Kidokinetics to continue using and developing its brand independently of its franchisees.