Does the license granted to C3 Wellness Spa automatically renew after the initial term?
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 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the license to use the "C3 Wellness" trademark is granted to C3 Wellness Spa by Aryes IP LLC, an affiliate. The license has an initial term of 20 years and automatically renews thereafter. This license allows C3 Wellness Spa to then license the trademarks to its franchisees.
For a prospective franchisee, this is a positive aspect, as it ensures the continued use of the "C3 Wellness" trademark as long as the Franchise Agreement remains in effect. Even if the License Agreement between Aryes IP LLC and C3 Wellness Spa is terminated due to a breach, C3 Wellness Spa franchisees will retain the right to use the marks as per their Franchise Agreement. This provides a level of security and continuity for the franchisee's business operations.
It is important to note that C3 Wellness Spa reserves the right to modify the marks used in the franchise operations. Franchisees must use the Licensed Marks only as authorized in writing by C3 Wellness Spa and according to the Franchise Agreement terms. Franchisees are also prohibited from using the Licensed Marks in the name of any corporate entity they establish. These stipulations ensure that C3 Wellness Spa maintains control over its brand and trademark usage, which is a common practice in franchising to protect brand integrity.