Are there any agreements currently in effect that limit a franchisee's right to use Kidokinetics' copyrights?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
the Intellectual Property.
- 13.2 No Interference. Neither Franchisee nor any Principal will take any action that would prejudice or interfere with the validity of Franchisor's or Licensor's rights with respect to the Intellectual Property. Nothing in this Agreement gives the Franchisee any right, title, or interest in or to any of the Intellectual Property or any of Franchisor's or Licensor's service marks, trademarks, trade names, trade dress, logos, copyrights or proprietary materials, except the right to use the Intellectual Property and the System in accordance with the terms and conditions of this Agreement for the operation of a Kidokinetics Business and only at or from the Kidokinetics Business Location or in approved advertising related to the Kidokinetics Business.
- 13.3 Goodwill. Franchisee understands and agrees that any and all goodwill arising from Franchisee's use of the Intellectual Property and the System inures solely and exclusively to the benefit of Franchisor and Licensor, and upon expiration or termination of this Agreement and the license granted, no monetary amount will be assigned as attributable to any goodwill associated with Franchisee's use of the Intellectual Property.
- 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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, several agreements and stipulations limit a franchisee's right to use Kidokinetics' intellectual property, including copyrights. The franchise agreement specifies that franchisees cannot take any action that would prejudice or interfere with the validity of Kidokinetics' or its licensor's rights regarding intellectual property.
Specifically, the agreement states that franchisees do not gain any right, title, or interest in Kidokinetics' intellectual property, including service marks, trademarks, trade names, trade dress, logos, copyrights, or proprietary materials. The franchisee's usage is strictly limited to operating a Kidokinetics business according to the agreement's terms, solely at the approved Kidokinetics Business Location or in approved advertising related to that business. Any unauthorized use of the intellectual property is considered an infringement of Kidokinetics' or its licensor's rights and constitutes a default under the agreement.
Furthermore, franchisees must assist Kidokinetics or its licensor in fully securing their rights to the intellectual property by providing necessary assignments, affidavits, documents, information, and assistance. Franchisees also acknowledge that all goodwill arising from their use of Kidokinetics' intellectual property benefits Kidokinetics and its licensor exclusively. Upon termination or expiration of the franchise agreement, no monetary value will be assigned to any goodwill associated with the franchisee's use of the intellectual property.
In practical terms, this means a Kidokinetics franchisee must adhere strictly to the brand's guidelines and standards when using any copyrighted materials. They cannot create their own variations of logos or marketing materials without express permission, and all benefits from brand recognition accrue to Kidokinetics. This is a common arrangement in franchising, ensuring brand consistency and protecting the franchisor's intellectual property rights.