Who is the licensor in the Intercompany License Agreement for the Crown Gold Exchange trademark?
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, WAM Gold, LLC, an affiliate of Crown Gold Exchange, owns the trademarks. Crown Gold Exchange has been granted the exclusive right to sublicense these trademarks to franchisees throughout the United States through an Intercompany License Agreement with WAM Gold, LLC. This agreement is perpetual and can only be modified with the mutual consent of both parties.
WAM Gold, LLC can cancel the Intercompany License 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 more than one year. However, the agreement specifies that even if the Intercompany License Agreement is terminated, the franchisee's rights will remain unaffected.
This arrangement is common in franchising, where a parent company or affiliate owns the intellectual property and licenses it to the franchising entity. This structure allows for centralized control and management of the brand's trademarks. For a prospective franchisee, this means that their right to use the Crown Gold Exchange trademarks is protected even if the licensing agreement between Crown Gold Exchange and its affiliate is terminated.