Under what condition can the Cross-License Agreement for Bonchon trademarks be renewed?
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, the Cross-License Agreement, effective as of December 26, 2018, and January 7, 2019, has an initial term of twenty years. Bonchon International and Bonchon USA have licensed Bonchon the rights to use the Bonchon System, trademarks, service marks, and other intellectual property, and to sublicense them to its franchisees. This agreement covers the United States, its territories, and possessions on a non-exclusive basis.
For a Bonchon franchisee, this means that the right to use Bonchon's trademarks and system is tied to this Cross-License Agreement. The agreement allows Bonchon to sublicense these rights to its franchisees. The initial 20-year term provides a defined period during which Bonchon has the right to grant these sublicenses.
The renewal of the Cross-License Agreement is contingent upon Bonchon not being in default. If Bonchon is not in default, it has the right to enter into renewal Cross-License Agreements for additional consecutive terms of twenty years each. This condition ensures that Bonchon remains in good standing to maintain its licensing rights.
This arrangement provides long-term stability for franchisees, as Bonchon can renew the Cross-License Agreement for additional 20-year terms, provided it meets the condition of not being in default. This long-term renewal option is a significant benefit, ensuring the continued use of the Bonchon System and trademarks for the duration of the franchise agreement and beyond, assuming renewals continue.