Who owns the principal trademark licensed to Crown Gold Exchange franchisees?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
The following is the principal trademark that we license to you. This trademark is owned by our Affiliate, WAM Gold, LLC. It is registered on the Principal Register of the United States Patent and Trademark Office.
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 principal trademark is owned by WAM Gold, LLC, which is an affiliate of Crown Gold Exchange. Crown Gold Exchange has been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States through an Intercompany License Agreement with WAM Gold, LLC. This agreement is of perpetual duration and can only be modified by mutual consent of both parties. However, WAM Gold, LLC can cancel the agreement if Crown Gold Exchange 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.
This arrangement means that while franchisees are using the Crown Gold Exchange trademark, the actual ownership resides with a separate entity. The Intercompany License Agreement ensures that Crown Gold Exchange franchisees have the right to use the trademark. Even if the agreement between Crown Gold Exchange and WAM Gold, LLC is terminated, the franchise rights of the franchisees will remain unaffected, providing a level of security for the franchisees.
Crown Gold Exchange also provides protection to franchisees regarding the use of the principal trademarks. If a franchisee uses the trademarks in accordance with the franchise agreement, Crown Gold Exchange will defend the franchisee against any legal action alleging infringement and will cover expenses and damages if the legal action is resolved unfavorably to the franchisee. However, Crown Gold Exchange may require the franchisee to modify or discontinue using a trademark at the franchisee's expense under the franchise agreement. Franchisees are obligated to notify Crown Gold Exchange of any identical or confusingly similar trademark uses or claims, but Crown Gold Exchange is not required to take affirmative action upon notification.