Is Chatime allowed to assign the Trademark License Agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We have a license from La Kaffa to use and to sublicense the use of the Trademarks in the
continental United States, Hawaii and Guam. This license is set forth in a certain Trademark License Agreement dated September 23, 2022, between La Kaffa and our parent company Chatime Global (including its subsidiaries). It has a term of thirty years and a renewal term of an additional ten years unless terminated earlier by us upon 90 days' notice to La Kaffa. It grants us the right to freely use and display the Trademarks in connection with the operation of our business in the continental United States, Hawaii and Guam. The license may not be assigned by us.
Source: Item 13 — Trademarks (FDD pages 38–40)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime has a Trademark License Agreement with La Kaffa, dated September 23, 2022, which grants Chatime the right to use and display the trademarks in the continental United States, Hawaii, and Guam. The agreement has an initial term of thirty years with an option to renew for an additional ten years.
However, the critical point for prospective franchisees is that Chatime is explicitly restricted from assigning this Trademark License Agreement. This means that Chatime cannot transfer the rights and obligations of the license to another party.
This restriction protects La Kaffa's interests and ensures Chatime remains responsible for upholding the terms of the agreement. For a franchisee, this clause provides some assurance that the trademark rights are managed directly by Chatime and are not subject to being transferred to an unknown or potentially less capable entity. This arrangement offers stability and consistency in brand management, which is crucial for maintaining the brand's reputation and customer recognition.