What rights has WAM Gold, LLC granted to Crown Gold Exchange regarding the trademarks?
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, which is an affiliate of Crown Gold Exchange, owns the trademarks. WAM Gold, LLC has granted Crown Gold Exchange the exclusive right to sublicense the trademarks to franchisees throughout the United States through an Intercompany License Agreement. This agreement has a perpetual duration and can only be modified by mutual consent of both parties.
The Intercompany License Agreement can be canceled by WAM Gold, LLC only 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, the franchisee's rights will remain unaffected.
Crown Gold Exchange is obligated to protect the franchisee's right to use the principal trademarks and defend against claims of infringement or unfair competition arising from the franchisee's use of the trademarks. The franchisee is obligated to notify Crown Gold Exchange of any use of, or claims of rights to, a trademark that is identical or confusingly similar to the licensed trademark. Crown Gold Exchange has the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee. If the franchisee uses the trademarks in accordance with the franchise agreement, Crown Gold Exchange will defend the franchisee against any legal action alleging infringement and indemnify the franchisee for expenses and damages if the legal action is resolved unfavorably.