What is the term of the License Agreement between Yes Caps and Cicis?
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.
We will indemnify you against all damages for which you are held liable in any proceeding resulting from your use of any of the Marks, so long as your conduct and the conduct of your Controlling Principals in the proceeding and in the use of the Marks is in full compliance with the terms of the Franchise Agreement. Other than this, we are not obligated to protect your rights to use the Marks or to protect you against claims of infringement or unfair competition.
Source: Item 13 — TRADEMARKS (FDD pages 41–42)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the License Agreement between Yes Caps and CiCi Enterprises, dated March 10, 2021, has a perpetual term. This agreement grants Cicis a license to use and sublicense the use of the Marks. However, this license can be terminated with a 60 days' notice.
For a prospective Cicis franchisee, this means that Cicis's right to use its trademarks is not guaranteed indefinitely. While the License Agreement is currently perpetual, Yes Caps can terminate it with only 60 days' notice. If this were to happen, Cicis would lose its right to use and sublicense the Marks, which could prevent Cicis from granting additional licenses of the Marks after the termination or expiration of their license.
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 provides some assurance to franchisees that their ability to operate under the Cicis brand will not be immediately jeopardized if the License Agreement is terminated. Still, the potential for termination introduces a degree of risk, as Cicis may need to rebrand or otherwise alter its operations if it loses the right to use its current trademarks in the future, and the franchisee will be responsible for all expenses related to the substitution of different Marks.