What is the initial term of the Cross-License Agreement that allows the licensing of Bonchon trademarks?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Bonchon International and Bonchon USA have licensed us the rights to use the Bonchon System, trademarks, service marks and other intellectual property and to sublicense them to our franchisees in separate cross-license agreements effective as of December 26, 2018 and January 7, 2019, respectively (collectively, the "Cross-License Agreement"). The initial term of the Cross-License Agreement is twenty years. The non-exclusive territory of the Cross-License Agreement is the United States, its territories and possessions. There are no provisions in the Cross-License Agreement regarding cancellation of that agreement. So long as we are not in default, we will have the right to enter into renewal Cross-License Agreements for additional consecutive terms of twenty years each.
Source: Item 13 — TRADEMARKS (FDD pages 65–68)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon International and Bonchon USA have licensed the rights to use the Bonchon system, trademarks, service marks, and other intellectual property to the franchisor. The franchisor then sublicenses these rights to its franchisees through separate cross-license agreements. These agreements became effective on December 26, 2018, and January 7, 2019. These agreements are collectively known as the "Cross-License Agreement".
The initial term of the Cross-License Agreement is twenty years. This means that Bonchon franchisees will have the right to use the Bonchon trademarks and system for a substantial period, providing a degree of stability and brand recognition. The territory covered by the Cross-License Agreement is the United States, including its territories and possessions, ensuring that franchisees have the right to operate under the Bonchon brand throughout the country.
Furthermore, the Cross-License Agreement does not contain any provisions for cancellation. This suggests that as long as the franchisor is not in default, it can maintain the rights to sublicense the Bonchon trademarks to its franchisees. Upon the expiration of the initial twenty-year term, Bonchon has the right to enter into renewal Cross-License Agreements for additional consecutive terms of twenty years each, allowing for long-term use of the Bonchon system and trademarks.