To whom do all rights in and goodwill from the use of the Marks accrue in the Cream franchise?
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, all rights and goodwill resulting from the use of the Marks accrue to Cream's Parent company. Cream licenses the Marks from Parent under a License Agreement dated June 17, 2025. The License Agreement has a term of 99 years from its effective date, unless terminated earlier.
The License Agreement can be terminated under certain conditions, such as by mutual agreement, by Cream if Parent breaches its obligations and fails to cure the breach, or by Parent if Cream defaults on obligations, is dissolved, or ceases to be under Parent's control. Termination of the License Agreement would result in Cream losing the right to use and sublicense the Marks to its franchisees.
This arrangement is common in franchising, where a parent company owns the intellectual property and licenses it to a subsidiary franchisor, who then sublicenses it to individual franchisees. It's important for prospective Cream franchisees to understand that their right to use the Cream Marks is ultimately dependent on the License Agreement between Cream and its Parent. Any issues that lead to the termination of this agreement could have significant implications for the franchise system.