Does the Intercompany License Agreement for Better Blend's trademarks have an expiration date?
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, which grants Better Blend the right to sublicense trademarks to franchisees, does not have an expiration date. The agreement can only be modified by mutual consent of both parties.
However, the agreement can be terminated by Better Blend Nutrition, LLC if Better Blend materially misuses the trademarks and fails to correct the misuse, or if Better Blend discontinues commercial use of the trademarks for a continuous period of more than one year. Despite these termination conditions, the Intercompany License Agreement specifies that if it is ever terminated, a franchisee's rights will remain unaffected.
This arrangement provides some assurance to franchisees, as their right to use the trademarks should continue even if the Intercompany License Agreement is terminated. However, franchisees should be aware of the conditions under which the agreement can be terminated, as misuse or discontinuation of the trademarks by Better Blend could potentially lead to complications, despite the protection of their franchise rights. It is important to note that Better Blend does not have a federal registration for its principal trademark, which may affect the legal benefits and rights associated with the trademark.