Is the license granted to Cordova by Cordova IP, LLC automatically renewable?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the terms of the Franchise Agreement, you will be granted a license to use the "Cordova" trademark and those other marks identified in the table below in connection with the operations of the Franchised Business. Our affiliate Cordova IP, LLC is the owner of the Licensed Marks and has granted to us a license with an initial 20 year term and with automatic renewal thereafter to use the Licensed Marks and to license our franchisees to use the Licensed Marks (the "License Agreement"). Although the License Agreement may be terminated as a result of a breach of the License Agreement, in the event of any termination of the License Agreement, our franchisees will continue to maintain the right to use the Marks pursuant to the terms of their Franchise Agreement. Termination of the License Agreement does not terminate use of the Marks by our authorized franchisees. We reserve the right to supplement and modify the marks that you may or may not use in connection with the operations of your Cordova Business. You may only use the Licensed Marks as authorized by us in writing and under the terms of your Franchise Agreement. You may not use the Licensed Marks in the name of any Corporate Entity that you establish.
Source: Item 13 — TRADEMARKS (FDD pages 30–31)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, Cordova IP, LLC, which owns the licensed marks, has granted Cordova a license to use these marks. This license has an initial term of 20 years and includes an automatic renewal provision thereafter. This agreement allows Cordova to then license its franchisees to use the marks.
Even if the License Agreement between Cordova and Cordova IP, LLC is terminated due to a breach, Cordova franchisees retain the right to use the marks as outlined in their Franchise Agreement. This means that the termination of the License Agreement does not automatically end the franchisees' right to use the marks. Cordova retains the right to modify the marks used in the operation of a Cordova business, and franchisees can only use the licensed marks as authorized in writing by Cordova and under the terms of the Franchise Agreement.
This arrangement provides a level of security for franchisees, ensuring their continued use of the brand's trademarks even if issues arise between Cordova and its affiliate, Cordova IP, LLC. However, franchisees must adhere to the specific guidelines and terms set by Cordova regarding the use of these marks to maintain this right.