What is the duration of the Intercompany License Agreement between WAM Gold, LLC and 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 WAM Gold, LLC, which grants Crown Gold Exchange the right to sublicense trademarks to franchisees, is of perpetual duration. This means the agreement continues indefinitely unless specific conditions for cancellation are met. The agreement can only be modified through mutual consent of both parties, ensuring that neither party can unilaterally alter the terms.
WAM Gold, LLC, as the affiliate owning the trademarks, can cancel the agreement under two specific conditions: 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. However, the agreement explicitly states that if it is ever terminated, the franchisee's rights will remain unaffected, providing a level of security for franchisees.
This perpetual agreement with protections for franchisees is a significant benefit. It assures franchisees that their right to use the trademarks will continue even if the Intercompany License Agreement is terminated. This arrangement is designed to protect the franchisees' investment and brand recognition, regardless of potential disputes or changes in the relationship between Crown Gold Exchange and its affiliate, WAM Gold, LLC.