Who granted Chocolate Bash the right to sublicense its trademarks?
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 right to sublicense its trademarks was granted to them by Albasha, LLC, their affiliate. This right is established under an Intercompany License Agreement between Chocolate Bash and Albasha, LLC. This agreement gives Chocolate Bash the exclusive right to sublicense the trademarks to franchisees throughout the United States.
This agreement has a perpetual duration, meaning it continues indefinitely unless specific conditions for cancellation are met. The agreement can only be modified if both Chocolate Bash and Albasha, LLC mutually consent to the changes. Albasha, LLC can cancel the agreement 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 includes a provision that protects franchisees. If the agreement between Chocolate Bash and Albasha, LLC is ever terminated, the franchise rights of individual franchisees will remain unaffected. This provides a level of security for franchisees, ensuring their right to use the trademarks continues even if the broader agreement between Chocolate Bash and its affiliate is terminated.