What is the duration of the Intercompany License Agreement for Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Nzus, Corp, our affiliate, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Nzus, Corp, 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 29–31)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the Intercompany License Agreement between Chocolate Fish Coffee and its affiliate, Nzus, Corp, is of perpetual duration. This agreement grants Chocolate Fish Coffee the exclusive right to sublicense trademarks to franchisees throughout the United States. The agreement can only be modified with the mutual consent of both parties.
However, Nzus, Corp can cancel the agreement under specific conditions: if Chocolate Fish Coffee materially misuses the trademarks and fails to correct the misuse, or if Chocolate Fish Coffee 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 rights will remain unaffected. This provides a level of security for franchisees, ensuring their franchise rights are protected even if the agreement between Chocolate Fish Coffee and its affiliate is terminated.