Are there any agreements that significantly limit Cream's rights to use or sublicense the Marks in a manner material to the franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
on or cancellation proceeding or any pending material litigation involving our principal Marks.
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 Parent under a License Agreement dated June 17, 2025. The agreement lasts for 99 years unless terminated. Cream's right to use and sublicense the marks can be terminated by mutual agreement, by Cream if Parent breaches its obligations and fails to cure such breach, or by Parent if Cream defaults, is dissolved, or ceases to be under Parent's control. All rights in and goodwill from the use of the Marks accrue to Parent. Except for the License Agreement, no other agreement significantly limits Cream's rights to use or sublicense the Marks in a manner material to the franchise.
This means that Cream's ability to grant franchisees the right to use its trademarks depends on its License Agreement with Parent. If the License Agreement is terminated, Cream franchisees would lose the right to use the Cream trademarks, which are critical for operating the franchise. The franchisee should be aware that the License Agreement gives Parent significant control over Cream's trademark rights.
Prospective franchisees should carefully consider the terms of the License Agreement and the potential risks associated with its termination. It is important to understand the circumstances under which the License Agreement could be terminated and what impact that would have on the franchise. Cream is not aware of any superior rights or infringing uses that could materially affect the franchisee's use of the marks in any state where the Shop may be located.