What is the duration of the Intercompany License Agreement for Chocolate Bash?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Albasha, LLC, our affiliate, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Albasha, LLC, we have been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement is of perpetual duration. It may be modified only by mutual consent of the parties. It may be canceled by our affiliate only if (1) we materially misuse the trademarks and fail to correct the misuse, or (2) we discontinue commercial use of the trademarks for a continuous period of more than one year. The Intercompany License Agreement specifies that if it is ever terminated, your franchise rights will remain unaffected.
Source: Item 13 — TRADEMARKS (FDD pages 26–28)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Intercompany License Agreement between Chocolate Bash and its affiliate, Albasha, LLC, is of perpetual duration. This agreement grants Chocolate Bash the exclusive right to sublicense its trademarks to franchisees throughout the United States. The agreement can only be modified through mutual consent of both parties.
However, the agreement can be canceled by Albasha, LLC under specific conditions: if Chocolate Bash materially misuses the trademarks and fails to correct the misuse, or if Chocolate Bash discontinues commercial use of the trademarks for a continuous period of more than one year. Despite these cancellation conditions, the Intercompany License Agreement ensures that a franchisee's rights will remain unaffected if the agreement is ever terminated.
This perpetual duration provides a level of stability for Chocolate Bash franchisees, as it ensures the brand has long-term access to its trademarks. Franchisees can generally be assured that their right to use the Chocolate Bash trademarks will continue indefinitely, barring any misuse or discontinuation of the trademarks by the franchisor. This is a significant factor for franchisees who rely on brand recognition and established trademarks to attract customers and build their business.