Under what conditions can the Intercompany License Agreement be canceled by the affiliate for 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 its affiliate, WAM Gold, LLC, can be canceled under specific conditions. WAM Gold, LLC owns the trademarks and has granted Crown Gold Exchange the exclusive right to sublicense these trademarks to franchisees throughout the United States via the Intercompany License Agreement. This agreement has a perpetual duration and can only be modified by mutual consent of both parties.
The affiliate, WAM Gold, LLC, can cancel the Intercompany License Agreement if Crown Gold Exchange (1) materially misuses the trademarks and fails to correct the misuse, or (2) discontinues commercial use of the trademarks for a continuous period of more than one year. However, the FDD specifies that even if the Intercompany License Agreement is terminated, the franchisee's rights will remain unaffected.
This arrangement protects franchisees because their right to use the Crown Gold Exchange trademarks is not dependent on the ongoing relationship between Crown Gold Exchange and its affiliate. Even if the license agreement between them is canceled, the franchisee retains the right to operate under the Crown Gold Exchange brand. This provides a level of security for the franchisee's investment and business operations.