Under what conditions can Better Blend Nutrition, LLC terminate the Intercompany License Agreement?
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, which grants Better Blend the exclusive right to sublicense trademarks to franchisees, can be terminated by Better Blend Nutrition, LLC under specific conditions. This agreement does not have an expiration date and can only be modified with the mutual consent of both parties.
Better Blend Nutrition, LLC can terminate the Intercompany License Agreement if Better Blend materially misuses the trademarks and fails to correct the misuse. Additionally, termination is possible if Better Blend discontinues commercial use of the trademarks for a continuous period exceeding one year.
It is important to note that the Intercompany License Agreement specifies that even if it is terminated, a franchisee's rights will remain unaffected. This provides a level of security for franchisees, ensuring their franchise rights are protected even if the agreement between Better Blend and its affiliate is terminated.