Under what condition is the Cicis license to use the Marks non-exclusive?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreements Regarding the Marks.
You understand, acknowledge and agree that:
- (1) The license to use the Marks is derived entirely from this Agreement and is non-exclusive except and only to the extent we expressly agree in this Agreement not to use or permit the use of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the license granted to a franchisee to use Cicis's Marks is generally non-exclusive. However, there is an exception: the license becomes exclusive to the extent that Cicis expressly agrees within the Franchise Agreement not to use the Marks or permit others to use them.
In practical terms, this means that while Cicis grants franchisees the right to operate under its brand name and utilize its trademarks, Cicis retains the freedom to also use those Marks. Cicis can also allow other franchisees or third parties to use them, unless the Franchise Agreement specifically states otherwise. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over its brand and explore various avenues for business growth.
For a prospective Cicis franchisee, this clause highlights the importance of carefully reviewing the Franchise Agreement to understand the scope of exclusivity being granted. While a protected territory might be defined geographically, the non-exclusive nature of the Marks license means Cicis could still potentially operate or license others to operate in the same area under certain circumstances, unless explicitly restricted by the agreement. Therefore, it is crucial to clarify any ambiguities regarding the use of the Marks and negotiate for more explicit protections if desired.