What is the initial term of the License Agreement that allows Anago to use the Proprietary Marks?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ACS owns the Proprietary Marks. Under a license agreement dated June 1, 2012 (the "License Agreement"), ACS granted us a license to use the Proprietary Marks and to sublicense the Proprietary Marks to Subfranchisors throughout the United States and internationally under a Subfranchise Rights Agreement. The License Agreement is for an initial term of 10 years and renews automatically for successive one-year renewal periods. We have the right to renew the License Agreement if we are not in default. ACS has the right to terminate the License Agreement if we commit a default and do not cure the default within the specified time period or if ACS sends us notice of non-renewal 45 days before the expiration of the current term. If the License Agreement is terminated, and ACS does not elect to assume our rights under the Subfranchise Rights Agreement, you will not be permitted to use the Proprietary Marks in the operation of your business and your Subfranchise Rights Agreement may be terminated. There are no other agreements currently in effect that significantly limit our rights to use or license the use of the Proprietary Marks in any manner material to you or your franchisees.
Source: Item 13 — TRADEMARKS (FDD pages 38–41)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, ACS owns the Proprietary Marks, and they granted Anago a license to use these marks through a License Agreement dated June 1, 2012. This agreement allows Anago to sublicense the Proprietary Marks to Subfranchisors throughout the United States and internationally under a Subfranchise Rights Agreement.
The License Agreement between ACS and Anago has an initial term of 10 years. After this initial period, the agreement automatically renews for successive one-year renewal periods. Anago has the right to renew the License Agreement as long as they are not in default.
However, ACS retains the right to terminate the License Agreement under specific conditions. ACS can terminate if Anago defaults on the agreement and fails to correct the default within the specified time or if ACS provides Anago with a notice of non-renewal 45 days before the current term expires.
This License Agreement is critical for Anago franchisees because if it is terminated and ACS does not assume Anago's rights under the Subfranchise Rights Agreement, franchisees will no longer be permitted to use the Proprietary Marks. This would likely lead to the termination of the Subfranchise Rights Agreement, highlighting the importance of Anago maintaining a good standing with ACS to ensure continued brand usage rights for its franchisees.