What is the duration of the Intercompany License Agreement for Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
WAM Gold, LLC, our affiliate, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and WAM Gold, LLC, we have been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement is of perpetual duration. It may be modified only by mutual consent of the parties. It may be canceled by our affiliate only if (1) we materially misuse the trademarks and fail to correct the misuse, or (2) we discontinue commercial use of the trademarks for a continuous period of more than one year. The Intercompany License Agreement specifies that if it is ever terminated, your franchise rights will remain unaffected.
Source: Item 13 — TRADEMARKS (FDD pages 26–27)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the Intercompany License Agreement between Crown Gold Exchange and its affiliate, WAM Gold, LLC, is of perpetual duration. This agreement grants Crown Gold Exchange the exclusive right to sublicense the trademarks to franchisees throughout the United States. This means that the agreement continues indefinitely unless specific conditions for cancellation are met.
The agreement can only be modified by mutual consent of both parties, ensuring that neither party can unilaterally alter the terms. WAM Gold, LLC, can cancel the agreement if Crown Gold Exchange materially misuses the trademarks and fails to correct the misuse, or if Crown Gold Exchange discontinues commercial use of the trademarks for a continuous period of more than one year. These conditions provide some security for WAM Gold, LLC, regarding the proper use and maintenance of the trademarks.
Importantly, the Intercompany License Agreement specifies that if it is ever terminated, the franchisee's rights will remain unaffected. This provision offers a level of protection to franchisees, ensuring that their ability to operate under the Crown Gold Exchange trademark is not jeopardized by any potential issues between Crown Gold Exchange and its affiliate. This is a beneficial term for franchisees as it mitigates risks associated with internal agreements within the Crown Gold Exchange organization.