To whom did CiCi Enterprises assign its ownership interest in the Cicis Marks?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the Trademark Assignment Agreement dated March 10, 2021, CiCi Enterprises assigned its ownership interest in the Marks to Yes Caps. Under the Trademark License Agreement, dated March 10, 2021 (the "License Agreement"), Yes Caps has granted us a license to use and sublicense the use of the Marks. The License Agreement has a perpetual term and can be terminated on 60 days' notice (resulting in the loss of our right to use and to sublicense the use of the Marks). Your rights to use the Marks during the current term of your Franchise Agreement will not be affected by the termination or expiration of our license. We would not be able to grant additional licenses of the Marks after expiration or termination of our license.
Source: Item 13 — TRADEMARKS (FDD pages 41–42)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, CiCi Enterprises assigned its ownership interest in the Cicis Marks to Yes Caps, as per the Trademark Assignment Agreement dated March 10, 2021. However, under the Trademark License Agreement, also dated March 10, 2021, Yes Caps granted Cicis a license to use and sublicense the use of the Marks.
This arrangement means that while Yes Caps owns the trademarks, Cicis retains the right to use them for franchising. The license agreement has a perpetual term but can be terminated on 60 days' notice, which would result in Cicis losing the right to use and sublicense the Marks. However, the FDD states that a franchisee's rights to use the Marks during the current term of their Franchise Agreement will not be affected by the termination or expiration of Cicis's license.
This arrangement presents a potential risk for prospective Cicis franchisees. While their current franchise agreement is protected, the franchisor would not be able to grant additional licenses of the Marks after the expiration or termination of their license with Yes Caps. Therefore, it is important for potential franchisees to understand the terms of the Trademark License Agreement between Cicis and Yes Caps and to assess the stability of this relationship.