Does C3 Wellness Spa currently own the rights to any license that is material to the franchise system?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the terms of the Franchise Agreement, you will be granted a license to use the "C3 Wellness" trademark and those other marks. Our affiliate Aryes IP LLC is the owner of the Licensed Marks and has granted to us a license with an initial 20 year term and with automatic renewal thereafter to use the Licensed Marks and to license our franchisees to use the Licensed Marks. We reserve the right to supplement and modify the marks that you may or may not use in the operations of your Spa Location Franchise. You may only use the Licensed Marks in the manner authorized by us in writing and pursuant to the terms of the Franchise Agreement. You may not use the Licensed Marks in the name of the Corporate Entity that you may establish to own and operate your Spa Location Franchise.
Under the terms of the Franchise Agreement, you will be granted a license to use the "C3 Wellness" trademark and those other marks that we designate. Our affiliate Aryes IP LLC is the owner of the Licensed Marks and has granted to us a license with an initial 20-year term and with automatic renewal thereafter use the Licensed Marks and to license our franchisees to use the Licensed Marks. Although the License Agreement may be terminated as a result of a breach of the License Agreement, in the event of any termination of the License Agreement, our franchisees will continue to maintain the right to use the Marks pursuant to the terms of their Franchise Agreement.
We reserve the right to supplement and modify the. Marks that you may or may not use in connection with the operations of your Franchised Business. You may only use the Licensed Marks as authorized by us in writing and under the terms of your Franchise Agreement. You may not use the Licensed Marks in the name of any Corporate Entity that you establish.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 41–42)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, C3 Wellness Spa does not directly own the rights to the "C3 Wellness" trademark and other designated marks. Instead, its affiliate, Aryes IP LLC, owns the Licensed Marks. Aryes IP LLC has granted C3 Wellness Spa a license to use these marks, which includes the right to sublicense them to franchisees. This license has an initial term of 20 years and automatically renews thereafter.
This arrangement means that while franchisees are granted the right to use the C3 Wellness Spa trademarks as part of their franchise agreement, the ultimate ownership resides with Aryes IP LLC. The FDD specifies that even if the license agreement between Aryes IP LLC and C3 Wellness Spa were to terminate due to a breach, franchisees would retain the right to use the marks according to their franchise agreements.
C3 Wellness Spa retains the right to modify and supplement the marks used in the operation of the franchised business. Franchisees are only allowed to use the Licensed Marks as authorized in writing by C3 Wellness Spa and according to the terms of the Franchise Agreement. Franchisees are prohibited from using the Licensed Marks in the name of any corporate entity they establish to operate their Spa Location Franchise. This ensures that the brand and trademarks are consistently managed and protected under the C3 Wellness Spa system.