Under what conditions can the Trademark License Agreement for Clean Your Dirty Face be terminated?
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, which began on March 30, 2022, has a term of 99 years unless terminated earlier. This agreement is between Clean Your Dirty Face and Krishna IP, the Trademark Owner, who owns all rights to the Marks.
The Trademark License Agreement can be terminated under two primary conditions. First, it can be terminated by mutual agreement between Clean Your Dirty Face and Krishna IP. Second, Krishna IP can terminate the agreement if Clean Your Dirty Face defaults on its obligations, dissolves, makes an assignment for the benefit of creditors, becomes insolvent, consents to the appointment of a receiver, or has its business seized.
The termination of this agreement would result in Clean Your Dirty Face losing the right to use and sublicense the Marks to its franchisees. This could have significant implications for franchisees, as their right to operate under the Clean Your Dirty Face brand is contingent upon the franchisor's continued access to these trademarks. Prospective franchisees should carefully consider these potential risks and perhaps seek assurances or clarifications from Clean Your Dirty Face regarding the stability of its relationship with Krishna IP.