What happens to Cicis' ability to grant additional licenses of the Marks after expiration or termination of their license?
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, Cicis's ability to grant additional licenses of the Marks is contingent upon their own license agreement with Yes Caps. Cicis has a license to use and sublicense the Marks from Yes Caps under a Trademark License Agreement dated March 10, 2021. This license has a perpetual term but can be terminated by Yes Caps with 60 days' notice.
If Yes Caps terminates the License Agreement, Cicis would lose 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.
However, Cicis would not be able to grant additional licenses of the Marks after the expiration or termination of their license from Yes Caps. This means that Cicis could not offer new franchises or renew existing ones under the same trademarks if their license is terminated. This could significantly impact Cicis's ability to expand or maintain its franchise system.