What is the term length of the License Agreement between DL IP Holdings, LLC and Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
DL IP Holdings, LLC owns the trademarks listed in the chart above and licenses it to us pursuant to a written License Agreement effective July 6, 2019, and amended on August 19, 2019. The License Agreement is for one-year terms that automatically renew unless terminated by either party at any time for any reason upon a 30-day written notice to the other party. If the License Agreement was terminated, you could lose the right to use the trademarks licensed to us under the License Agreement. There are no other currently effective agreements that significantly limit our rights to use or license the use of our trademarks listed in this section.
Source: Item 13 — TRADEMARKS (FDD pages 44–45)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the License Agreement between DL IP Holdings, LLC and Deka Lash has a term length of one year. This agreement, effective from July 6, 2019, and amended on August 19, 2019, automatically renews each year. However, either party has the right to terminate the agreement at any time, provided they give a 30-day written notice.
For a prospective Deka Lash franchisee, this means that Deka Lash's right to use the trademarks is not guaranteed indefinitely. The continued use of the Deka Lash trademarks is contingent upon the License Agreement remaining in effect. If DL IP Holdings, LLC were to terminate the agreement, Deka Lash franchisees could lose their right to use the trademarks.
This arrangement is somewhat unusual in franchising. Typically, a franchisor owns its trademarks directly and grants franchisees the right to use them for the term of the franchise agreement. The fact that Deka Lash licenses its trademarks from a separate entity, DL IP Holdings, LLC, introduces an additional layer of risk for franchisees. It is important for potential franchisees to understand the relationship between Deka Lash and DL IP Holdings, LLC, and the circumstances under which the License Agreement could be terminated, as this could significantly impact their ability to operate their Deka Lash franchise.