How can the Intercompany License Agreement for Better Blend be modified?
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 Better Blend Nutrition, LLC, grants Better Blend the exclusive right to sublicense trademarks to franchisees throughout the United States. This agreement has no expiration date.
The FDD specifies that the Intercompany License Agreement can only be modified by mutual consent of both Better Blend and Better Blend Nutrition, LLC. This means that any changes to the agreement require both parties to agree on the modifications.
This requirement of mutual consent provides a level of security for Better Blend franchisees. It ensures that the terms under which Better Blend can sublicense the trademarks cannot be unilaterally changed by Better Blend Nutrition, LLC, without Better Blend's agreement. This protects the franchisees' rights to use the trademarks under the terms initially agreed upon. However, it's important to note that while the Intercompany License Agreement protects the franchisee, Better Blend may still require a franchisee to modify or discontinue using a trademark, at the franchisee's expense, as outlined in the franchise agreement.