What happens to a Better Blend franchisee's rights if the Intercompany License Agreement is terminated?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Better Blend Nutrition, LLC, our affiliate, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Better Blend Nutrition, LLC, we have been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement has no expiration. It may be modified only by mutual consent of the parties. It may be terminated by our affiliate only if (1) we materially misuse the trademarks and fail to correct the misuse, or (2) we discontinue commercial use of the trademarks for a continuous period of more than one year. The Intercompany License Agreement specifies that if it is ever terminated, your franchise rights will remain unaffected.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Intercompany License Agreement between Better Blend and its affiliate, Better Blend Nutrition, LLC, grants Better Blend the exclusive right to sublicense trademarks to franchisees in the United States. The agreement remains in effect indefinitely unless modified by mutual consent or terminated by Better Blend Nutrition, LLC, under specific conditions: if Better Blend materially misuses the trademarks without correcting the misuse, or if Better Blend discontinues commercial use of the trademarks for over a year.
Importantly, the Intercompany License Agreement explicitly states that the termination of this agreement will not affect a franchisee's rights. This means that even if the licensing agreement between Better Blend and its affiliate is terminated, the franchisee's right to use the trademarks under their franchise agreement remains intact. This provision offers a level of security for franchisees, ensuring their business operations are not disrupted by potential issues between Better Blend and its affiliate regarding trademark usage.
This protection is significant because trademark rights are crucial for brand recognition and business operations. Without assurance, a franchisee could face considerable disruption and financial loss if trademark rights were suddenly revoked due to issues between the franchisor and a third party. Better Blend's commitment to protecting franchisee rights, even in the event of an intercompany agreement termination, demonstrates a degree of stability and security for its franchisees.