What must a Punch King Fitness franchisee do if they notice someone else using the Punch King Fitness Marks?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Your use of the Punch King Fitness Marks is limited to use in connection with the operation of your Punch King Fitness Franchised Business as described in the Franchise Agreement and as outlined in the Punch King Fitness Operating Manual. You must promptly notify us of any use of the Punch King Fitness Marks or any colorable variation by any person or legal entity or any litigation instituted by any person or legal entity against you or us involving the Punch King Fitness Marks. We will control any litigation or proceeding. We are not required to defend the Punch King Fitness Marks. If we undertake the defense, prosecution, or
settlement of any litigation relating to the Punch King Fitness Marks, you agree to assist as necessary to carry out such defense, prosecution, or settlement. We retain the right to modify or discontinue the Mark(s). We are not required to indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a trademark licensed by us or if the proceeding is resolved unfavorably. You shall, upon demand by us, modify or discontinue the use of Punch King Fitness Mark(s), at your sole cost and expense, any Mark(s), as directed by us. We are not required to reimburse or compensate you for any modification or discontinuation of the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 38–39)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, a franchisee must promptly notify Punch King Fitness if they observe any unauthorized use of the Punch King Fitness Marks or any similar variation. This obligation extends to any litigation initiated by another party against either the franchisee or Punch King Fitness involving these trademarks.
Punch King Fitness retains control over any litigation or proceedings related to the Punch King Fitness Marks, and while they are not obligated to defend these marks, franchisees are required to assist in the defense, prosecution, or settlement of any related litigation if Punch King Fitness chooses to undertake such actions. However, Punch King Fitness is not required to indemnify franchisees for expenses or damages incurred if they become involved in administrative or judicial proceedings concerning a licensed trademark, particularly if the outcome is unfavorable.
Furthermore, Punch King Fitness reserves the right to modify or discontinue the use of any Punch King Fitness Mark, and franchisees are obligated to comply with such directives at their own expense. Franchisees will not be compensated for any modifications or discontinuation of the Marks. This means a franchisee bears the risk of needing to rebrand or change marketing materials at their own cost if directed by the franchisor.
This requirement to report and potentially modify branding underscores the importance of trademark protection for a franchise system. It also highlights a potential cost and operational burden for franchisees, who must remain vigilant about trademark infringement and be prepared to adapt to changes dictated by Punch King Fitness.