What happens if a Kidokinetics franchisee does not follow the rules when using the Marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
You must follow our rules when using the Marks. You cannot use our name or Mark as part of a corporate name or with modifying words, designs or symbols unless you receive our prior written consent. You must indicate to the public in any contract, advertisement and with a conspicuous sign in your Kidokinetics Business that you are an independently owned and operated licensed franchisee of Kidokinetics. You may not use the Marks in the sale of unauthorized products or services or in any manner we do not authorize. You may not use the Marks in any advertising for the transfer, sale or other disposition of the Kidokinetics Franchise, or any interest in the Kidokinetics Franchise. All rights and goodwill from the use of the Marks accrue to us.
Source: Item 13 — TRADEMARKS (FDD pages 36–38)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must adhere to specific rules when using the company's trademarks. These rules include obtaining prior written consent before using the Kidokinetics name or marks as part of a corporate name or with modifying words, designs, or symbols. Franchisees must also indicate in contracts, advertisements, and with a conspicuous sign that they are independently owned and operated licensed franchisees of Kidokinetics. They are prohibited from using the marks in the sale of unauthorized products or services or in any manner not authorized by Kidokinetics, as well as in advertising for the transfer, sale, or other disposition of the Kidokinetics franchise.
The FDD does not explicitly state the consequences of failing to follow these rules. However, it does state that all rights and goodwill from the use of the marks accrue to Kidokinetics. This implies that non-compliance could potentially lead to a breach of the franchise agreement, which could result in penalties, legal action, or even termination of the franchise agreement.
While the FDD outlines the required actions and restrictions regarding the use of Kidokinetics's trademarks, it does not detail the specific repercussions for non-compliance. A prospective franchisee should seek clarification from Kidokinetics regarding the potential consequences of not adhering to the trademark usage guidelines. Understanding these consequences is crucial for ensuring compliance and avoiding potential disputes or penalties during the franchise term.