What is the renewal term length of the Trademark License Agreement between La Kaffa and Chatime Global for Chatime?
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. All rights in and goodwill from the use of the Trademarks accrue to us and our affiliates. There are no other agreements that significantly limit our right to use or license the use of the Trademarks.
Source: Item 13 — Trademarks (FDD pages 38–40)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime Global, the parent company of Chatime, has a Trademark License Agreement with La Kaffa, effective September 23, 2022. This agreement grants Chatime the right to use and sublicense the Trademarks in the continental United States, Hawaii, and Guam.
The Trademark License Agreement has an initial term of thirty years. After this initial term, there is a renewal term of an additional ten years. However, Chatime has the option to terminate the agreement earlier by providing 90 days' notice to La Kaffa.
This license agreement is crucial for Chatime franchisees because it allows Chatime to grant franchisees the right to operate their stores under the Chatime brand and associated trademarks. The agreement specifies that Chatime cannot assign the license, and all rights and goodwill from the use of the Trademarks accrue to Chatime and its affiliates. This ensures that Chatime maintains control over its brand and trademarks, which is typical in franchising.