What is the Kidokinetics franchisor's role in developing and controlling the use of the Marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
C. Franchisor continues to develop, use, and control the use of the Marks in order to identify for the public the source of services and products marketed under the Marks and the System, and to represent the System's high standards of quality, appearance, and service.
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 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
Franchisor reserves the right to require Franchisee to provide it with all Social Media account information related to the Kidokinetics Business and grant Franchisor independent access (including as account administrator) to Franchisee's Kidokinetics Business Social Media accounts in order to make upgrades, post information, and manage Social Media accounts as Franchisor deems appropriate for the benefit of the System, Franchisor retains the sole right to market on the Internet, including the use of websites, domain names, uniform resource locator's, linking, search engines (and search engine optimization techniques), banner ads, meta-tags, marketing, auction sites, e-commerce and co-branding arrangements.
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.
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.
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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, Kidokinetics retains significant control over the use of its trademarks and intellectual property. Kidokinetics continues to develop, use, and control the use of the Marks to identify for the public the source of services and products marketed under the Marks and the System, and to represent the System's high standards of quality, appearance, and service. The franchisor has the right to use the marks itself, grant licenses to others, and develop other systems using the marks or similar marks without providing rights to the franchisee. Kidokinetics also retains the sole right to market on the Internet, including the use of websites, domain names, search engines, and social media.
Kidokinetics franchisees must adhere to strict guidelines regarding the use of the Kidokinetics marks. Franchisees must advertise the Kidokinetics Business only under the mark "Kidokinetics ®," and design, unless otherwise authorized or required by Kidokinetics. They must use only the marks that Kidokinetics designates and only in the manner Kidokinetics authorizes and permits. Franchisees cannot use the marks as part of their corporate or legal name without prior approval from Kidokinetics. All merchandise that utilizes the marks must be approved by Kidokinetics in writing before being sold by the franchisee.
Kidokinetics also reserves the right to substitute different marks if the current marks can no longer be used or if Kidokinetics determines that a substitution would benefit the system. In such cases, franchisees are required to discontinue or modify their use of any of the marks or use substitute marks at their own expense within 10 days of notification. Franchisees are also required to allow Kidokinetics access to their social media accounts related to the Kidokinetics Business to make upgrades, post information, and manage the accounts as Kidokinetics deems appropriate. These stipulations ensure that Kidokinetics maintains a consistent brand image and quality across all franchise locations, which is typical in franchise systems.