Under what agreement are the Crisp & Green trademarks licensed to the franchisor?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
All of the Marks are owned by our Parent, Crisp & Green LLC, and licensed to us pursuant to a Trademark License Agreement dated February 28, 2018 (the "Trademark License Agreement"). The Trademark License Agreement continues for an indefinite term, provided that it may be terminated upon the mutual agreement of us or our Parent, or by our Parent in the event we default under the Trademark License Agreement and do not cure such default. Our Parent has the right to approve all proposed uses of the Marks. Because we are a wholly-owned subsidiary of our Parent and our Parent maintains ownership of the Marks, we do not
anticipate an effect on your rights to use the Marks if the Trademark License Agreement is terminated. No other agreement limits our right to use or sublicense the Marks. Our Parent has filed, and intends to continue to file, all affidavits and other documents required to maintain its interest in and to the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 47–49)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the trademarks are licensed to the franchisor, Crisp & Green, pursuant to a Trademark License Agreement dated February 28, 2018. The owner of all the marks is Crisp & Green LLC, the parent company of the franchisor.
The Trademark License Agreement continues for an indefinite term, but it can be terminated under certain conditions. These conditions include mutual agreement between Crisp & Green and its parent company, or if Crisp & Green defaults under the agreement and fails to correct the default. However, because the parent company owns the trademarks and Crisp & Green is a wholly-owned subsidiary, the FDD indicates that the termination of the Trademark License Agreement is not anticipated to affect a franchisee's right to use the marks.
This arrangement is fairly common in franchising, where a parent company owns the intellectual property and licenses it to a subsidiary that acts as the franchisor. This structure provides an additional layer of protection for the trademarks and allows the parent company to maintain control over their use. For a prospective Crisp & Green franchisee, this means that their right to use the Crisp & Green trademarks is ultimately dependent on the Trademark License Agreement between the franchisor and its parent company. While the FDD suggests that termination of this agreement is unlikely to affect the franchisee's rights, it is still a factor to consider.