To whom do all rights and goodwill from the use of the Kidokinetics Marks accrue?
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, all rights and goodwill resulting from the use of the Kidokinetics Marks accrue to Kidokinetics itself. This means that while franchisees are granted a license to use the Kidokinetics trademarks and system, the underlying ownership and benefits associated with the brand's reputation remain with the franchisor.
This is a standard arrangement in franchising. The franchisee's use of the Kidokinetics name and system builds brand recognition and value, but that value ultimately benefits the franchisor. This arrangement ensures that Kidokinetics maintains control over its brand and can ensure consistent quality and standards across all franchise locations.
For a prospective franchisee, this means that while they can leverage the established Kidokinetics brand to attract customers, they do not gain any ownership stake in the brand itself. The franchisee must adhere to Kidokinetics's guidelines for using the marks and cannot use them in any way that is not authorized. This includes restrictions on using the name in a corporate name or with modifying words without prior written consent, and a requirement to indicate independent ownership in contracts and advertisements. Understanding this dynamic is crucial for franchisees as they invest in and operate their Kidokinetics franchise.