What is the duration of the Intercompany License Agreement between Albasha, LLC and the Chocolate Bash franchisor?
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 Albasha, LLC, and Chocolate Bash is of perpetual duration. This agreement grants Chocolate Bash the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement can only be modified through mutual consent of both parties.
However, Albasha, LLC can cancel the agreement under specific conditions. These conditions include 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.
Importantly, the Intercompany License Agreement specifies that even if it is terminated, a franchisee's franchise rights will remain unaffected. This provides a level of security for franchisees, ensuring their rights are protected even if the agreement between Chocolate Bash and Albasha, LLC is terminated.