What happens if the license to use the marks is terminated for Canine Dimensions?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
All Marks are owned by our affiliate, Davidson and Michaels, LLC, who has granted to us a royalty-free license to exclusively use and franchise the Marks to operators of Canine Dimensions Businesses. The license does not contain any significant limitations on our right to use or license the Marks. If the license were to be terminated, we will have the right to change the name under which we and our franchisees operate and continue to operate and license the existing Canine Dimensions Businesses under a different name. Except as described above, no currently effective agreements significantly limit our rights to use or license the use of the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 25–26)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the trademarks used by Canine Dimensions are owned by Davidson and Michaels, LLC, who has granted Canine Dimensions a royalty-free license to use and franchise the marks. This license allows Canine Dimensions to franchise the marks to operators of Canine Dimensions businesses. The license does not contain significant limitations on Canine Dimensions's right to use or license the marks.
Should the license be terminated, Canine Dimensions retains the right to change the name under which it and its franchisees operate. Canine Dimensions can then continue to operate and license existing Canine Dimensions businesses under a different name. This provision protects Canine Dimensions and its franchisees from a complete shutdown of operations if the trademark license is terminated.
This is a crucial clause for prospective franchisees. While Canine Dimensions does not own the trademarks directly, they have secured the right to continue operations under a new name if the license is terminated. However, franchisees should consider the potential costs and disruptions associated with rebranding, even though the business can continue under a different name. Franchisees should inquire about the potential implications of a name change, including marketing expenses and customer confusion.