What is the Kidokinetics franchisee's obligation regarding the validity of the Marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
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 the 2024 Kidokinetics Franchise Disclosure Document, as a franchisee, you cannot contest the validity of Kidokinetics' or its licensor's interest in the intellectual property. This includes trademarks, service marks, trade names, trade dress, logos, copyrights, and proprietary materials. You are also prohibited from assisting others in contesting the validity of Kidokinetics' intellectual property.
Kidokinetics retains the right to substitute different marks for use in identifying the System and the Kidokinetics Business if the current Marks can no longer be used, or if Kidokinetics determines that substitution of different Marks will be beneficial to the System. In such an event, Kidokinetics will require you, at your expense, to discontinue or modify your use of any of the Marks or to use one or more additional or substitute Marks no later than 10 days after notification.
Furthermore, you must provide Kidokinetics or its licensor with all assignments, affidavits, documents, information, and assistance reasonably requested to fully vest in Kidokinetics or its licensor all rights, title, and interest in and to the intellectual property. This includes items reasonably requested to register, maintain, and enforce such rights. Unauthorized use of the intellectual property constitutes an infringement of Kidokinetics' or its licensor's rights and an event of default under the agreement.