How can the Intercompany License Agreement for Crown Gold Exchange be modified?
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 exclusive right to sublicense trademarks to franchisees, is of perpetual duration. This agreement can only be modified if both Crown Gold Exchange and WAM Gold, LLC mutually consent to the changes.
This means that as a Crown Gold Exchange franchisee, you are subject to the terms of this agreement, but you have no direct control over its modification. Any changes to the agreement that could affect your franchise would require the consent of both Crown Gold Exchange and WAM Gold, LLC. This arrangement is fairly typical in franchising, where the franchisor relies on agreements with related entities for key aspects of the franchise system.
Furthermore, the Intercompany License Agreement can be canceled by WAM Gold, LLC 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 specifies that if it is ever terminated, your franchise rights will remain unaffected. This provides some assurance to franchisees that their right to use the trademarks will continue even if the Intercompany License Agreement is terminated.