Who owns the Chocolate Bash trademark that is licensed to franchisees?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 13 — TRADEMARKS (FDD pages 26–28)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Chocolate Bash trademark is owned by Albasha, LLC, which is an affiliate of the franchisor. Chocolate Bash has 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 over a 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 licensed trademarks and defending against infringement claims. Franchisees are obligated to notify Chocolate Bash of any similar trademark uses or claims. Chocolate Bash has the right to control any legal proceedings involving the licensed trademarks. If a franchisee uses the trademarks according to the franchise agreement, Chocolate Bash will defend the franchisee against infringement claims and cover expenses and damages if the legal action is unfavorable to the franchisee.
However, Chocolate Bash retains the right to 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 significantly impact 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.