Under what agreement does Cream license the trademarks 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 Parent under a License Agreement dated June 17, 2025. This agreement grants Cream the right to use the trademarks, which are essential for operating and franchising the Cream business. The License Agreement has a term of 99 years from its effective date, indicating a long-term arrangement, unless it is terminated earlier.
The License Agreement can be terminated under specific conditions. These include mutual agreement between Cream and Parent, Cream's breach of its obligations if not cured, or by Parent if Cream defaults on obligations, dissolves, 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 trademarks to its franchisees, which would have significant implications for the franchise system. All rights and goodwill associated with the use of the trademarks accrue to Parent, reinforcing Parent's ownership and control over the brand's intellectual property.
For a prospective Cream franchisee, this arrangement means that the continued use of the Cream trademarks is contingent upon the License Agreement remaining in effect. Franchisees should be aware of the conditions under which the License Agreement could be terminated, as this could directly impact their ability to operate their franchise. It is also important to note that any goodwill generated through the use of the trademarks benefits Parent, not Cream or its franchisees. Cream is obligated to inform franchisees of any modifications or updates to the trademarks or system and franchisees are expected to comply with these changes without reimbursement for associated costs or lost revenue.