Under what conditions will the Trademark License for Crepe De Licious automatically renew?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marks and the System are owned by Holdings, and are licensed exclusively to us. Holdings has granted us an exclusive license ("Trademark License") to use the Marks to franchise the System in the United States. The Trademark License is for ten years and began on December 23, 2014. It will automatically renew for subsequent ten-year periods provided we are not in default or do not materially breach the Trademark License agreement by engaging in any activity which damages the Marks or the goodwill of the System. If the Trademark License agreement is terminated, Holdings has agreed to license the use of the Marks directly to our franchisees until such time as each franchise agreement expires or is otherwise terminated.
Source: Item 13 — TRADEMARKS (FDD pages 43–45)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the Trademark License, which began on December 23, 2014, is granted to Crepe De Licious Holding USA, Inc. by Holdings for a period of ten years. The Trademark License gives Crepe De Licious the right to use the Marks to franchise the System in the United States.
The Trademark License will automatically renew for subsequent ten-year periods if Crepe De Licious Holding USA, Inc. is not in default. Renewal is also contingent on Crepe De Licious Holding USA, Inc. not materially breaching the Trademark License agreement. A material breach would include engaging in any activity which damages the Marks or the goodwill of the System.
For a prospective Crepe De Licious franchisee, this means that the continued use of the Crepe De Licious trademarks is dependent on the parent company, Crepe De Licious Holding USA, Inc., remaining in good standing with Holdings and upholding the integrity of the brand. If the Trademark License agreement is terminated, Holdings has agreed to license the use of the Marks directly to the franchisees until each franchise agreement expires or is otherwise terminated. This provides some assurance of continued brand usage rights even if the primary license is terminated.