How can the Intercompany License Agreement be modified 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 exclusive right to sublicense trademarks to franchisees, is of perpetual duration. This agreement outlines the terms under which Crown Gold Exchange can use the trademarks owned by its affiliate, WAM Gold, LLC.
The FDD states that the Intercompany License Agreement may only be modified by mutual consent of both WAM Gold, LLC and Crown Gold Exchange. This means that any changes to the agreement require both parties to agree on the modifications. This requirement protects both parties, ensuring that neither can unilaterally alter the terms of the agreement.
The 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 Intercompany License Agreement specifies that if it is ever terminated, the franchisee's rights will remain unaffected, providing a level of security for franchisees. This ensures that even if the agreement between Crown Gold Exchange and WAM Gold, LLC is terminated, the franchisees' rights to use the trademarks will continue.