Is the trademark license that Cicis has with Yes Caps, LLC transferable or assignable?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
On March 10, 2021, the Company entered into a trademark and other intellectual property license agreement with Yes Caps, LLC, owner of all rights, title and interest in the trademarks of the CiCi's Pizza Concept. The agreement grants the Company an exclusive, non-transferable, non-assignable, royaltyfree license to use and sublicense the use of the trademarks and other intellectual property.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the trademark license agreement between Cicis and Yes Caps, LLC, is explicitly non-transferable and non-assignable. This agreement, established on March 10, 2021, grants Cicis an exclusive, royalty-free license to use and sublicense the trademarks and other intellectual property associated with the CiCi's Pizza concept.
This means that Cicis, as the licensee, cannot transfer or assign its rights under this agreement to another party. This restriction is significant for prospective franchisees because it ensures that Cicis maintains direct control over the use of its trademarks and intellectual property. It also means that if a franchisee were to sell their Cicis franchise, the rights to the trademark would not automatically transfer to the new owner; the new owner would still be subject to the terms of the franchise agreement with Cicis.
The non-transferable and non-assignable nature of the trademark license protects the integrity and consistency of the Cicis brand. By retaining control over the trademarks, Cicis can ensure that all franchisees adhere to the established brand standards and guidelines. This helps to maintain a uniform image and reputation for the franchise system as a whole. This arrangement is fairly typical in franchising, as franchisors generally want to maintain tight control over their brand and trademarks.
In summary, the trademark license agreement between Cicis and Yes Caps, LLC, is designed to protect the Cicis brand by preventing unauthorized transfer or assignment of trademark rights. This provision is a standard practice in franchising and is intended to safeguard the brand's reputation and ensure consistency across all franchise locations.