What is the duration of the License Agreement under which Cream licenses the Marks from Parent?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We license the Marks from Parent under a License Agreement dated June 17, 2025 (the "License Agreement"). The term of the License Agreement will continue for 99 years from its effective date 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, by us if Parent breaches its obligations and fails to cure such breach, or by Parent for a number of reasons, including if we default on any obligations, we are dissolved, or if we cease to be under Parent's control. All rights in and goodwill from the use of the Marks accrue to Parent. 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 39–40)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream licenses its trademarks from its Parent company under a License Agreement dated June 17, 2025. The term of this License Agreement is set to last for 99 years from the effective date. This agreement outlines the terms and conditions under which Cream can use and sublicense the trademarks to its franchisees.
However, the License Agreement can be terminated before the 99-year term expires under certain conditions. These conditions include mutual agreement between Cream and its Parent, a breach of obligations by the Parent that goes uncured, or several reasons initiated by the Parent. These reasons include Cream defaulting on its obligations, Cream dissolving, or Cream ceasing to be under the Parent's control.
For a prospective Cream franchisee, this means that the right to use Cream's trademarks is indirectly dependent on this License Agreement between Cream and its Parent. If the License Agreement is terminated, Cream would lose its right to use and sublicense the trademarks, which could significantly impact the franchisee's business. It is important to note that all rights and goodwill associated with the use of the trademarks ultimately accrue to Cream's Parent company.