What is the term length of the Trademark License Agreement for Clean Your Dirty Face?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We license the Marks from Krishna IP ("Trademark Owner"), who owns all rights to the Marks, pursuant to a Trademark License Agreement (the "License Agreement"). The term of the License Agreement began on March 30, 2022 and will continue for 99 years unless terminated. The License Agreement may be terminated (resulting in the loss of our right to use and to sublicense the use of the Marks to you) by mutual agreement of the parties, or by Trademark Owner for a number of reasons, including if we default on any obligations, we are dissolved, make an assignment for the benefit of creditors, become insolvent, consent to appointment of a receiver, or our business is seized. All rights in and goodwill from the use of the Marks accrue to Trademark Owner. Except as described above, no agreement significantly limits our rights to use or sublicense the Marks in a manner material to the franchise.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the Trademark License Agreement began on March 30, 2022, and will continue for 99 years unless terminated. This agreement allows Clean Your Dirty Face to use and sublicense the Marks to its franchisees.
For a prospective Clean Your Dirty Face franchisee, this means the right to use the Clean Your Dirty Face trademarks is secured for a substantial period, aligning with the typical lifespan of a successful franchise operation. The franchisee benefits from the established brand recognition associated with the trademarks for an extended duration.
However, the agreement can be terminated under certain conditions, such as mutual agreement between the parties or if Clean Your Dirty Face defaults on its obligations, becomes insolvent, or has its business seized. Such termination would result in the loss of Clean Your Dirty Face's right to use and sublicense the trademarks, which could significantly impact the franchisee's business. Franchisees should be aware of these potential risks and ensure Clean Your Dirty Face maintains a stable financial and operational status to safeguard their trademark usage rights.
All rights and goodwill from the use of the Marks accrue to the Trademark Owner, Krishna IP. This is a common arrangement where the franchisor licenses the trademarks from a third party. Franchisees must adhere to the guidelines set forth in the Operations Manual regarding trademark usage, especially on social networking sites, and must not contest the validity of the Trademark Owner's ownership of the Marks.