How can the License Agreement between Yes Caps and Cicis be terminated?
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, the Trademark License Agreement, dated March 10, 2021, between Yes Caps and Cicis has a perpetual term. However, it can be terminated with 60 days' notice.
This is significant for prospective Cicis franchisees because the License Agreement grants Cicis the right to use and sublicense its trademarks. If Yes Caps terminates the agreement, Cicis would lose the right to use and sublicense the Marks for future franchises. However, the FDD states that the termination or expiration of the license will not affect a franchisee's rights to use the Marks during the current term of their Franchise Agreement.
This arrangement introduces a potential risk for Cicis franchisees. While existing franchisees are protected during their current term, Cicis would not be able to grant additional licenses of the Marks after the termination or expiration of their license with Yes Caps. This could impact the brand's consistency and marketing efforts in the long term, potentially affecting the value of the franchise. Prospective franchisees should inquire about Cicis's plans to secure trademark usage rights in the event of termination to ensure long-term brand stability.