Who owns the principal trademarks licensed to Chocolate Bash franchisees?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 13: TRADEMARKS]
Item 13 TRADEMARKS
Principal Trademark
The following is the principal trademark that we license to you. This trademark is owned by our Affiliate, Albasha, LLC. It is registered on the Principal Register of the United States Patent and Trademark Office.
[Item 13: TRADEMARKS]
Agreements
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.
Protection of Rights
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We have the right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
[Item 13: TRADEMARKS]
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
Superior Prior Rights and Infringing Uses
We do not know of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks.
Source: Item 13 — TRADEMARKS (FDD pages 26–28)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the principal trademarks are owned by Albasha, LLC, which is an affiliate of Chocolate Bash. Chocolate Bash has been granted the exclusive right to sublicense these trademarks to its franchisees throughout the United States through an Intercompany License Agreement with Albasha, LLC. This agreement is perpetual and can only be modified with the mutual consent of both parties. Albasha, LLC can cancel the agreement if Chocolate Bash misuses the trademarks and fails to correct the misuse, or if Chocolate Bash discontinues commercial use of the trademarks for more than one year. However, the agreement specifies that termination of the Intercompany License Agreement will not affect the franchisee's rights.
Chocolate Bash is responsible for protecting the franchisee's right to use the principal trademarks and defending against claims of infringement or unfair competition. Franchisees are obligated to notify Chocolate Bash of any identical or confusingly similar trademark use or claims. Chocolate Bash has the right to control any administrative or legal proceedings involving the licensed trademarks. If a franchisee uses the trademarks according to the franchise agreement, Chocolate Bash will defend the franchisee against legal action alleging infringement and will cover expenses and damages if the legal action is unfavorable to the franchisee.
Chocolate Bash may require franchisees to modify or discontinue using a trademark at the franchisee's expense. The FDD also indicates that Chocolate Bash is unaware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks. The principal trademark that Chocolate Bash licenses to franchisees is registered on the Principal Register of the United States Patent and Trademark Office.