Can Deka Lash terminate the trademark license agreement at any time?
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 trademark license agreement between DL IP Holdings, LLC and Deka Lash can be terminated by either party. The License Agreement, effective July 6, 2019, and amended on August 19, 2019, has one-year terms that automatically renew.
Deka Lash or DL IP Holdings, LLC can terminate the agreement at any time, for any reason. To do so, the terminating party must provide a 30-day written notice to the other party.
For a prospective Deka Lash franchisee, this means that the right to use the Deka Lash trademarks is contingent on the continuation of this License Agreement. If the License Agreement is terminated, Deka Lash franchisees could lose the right to use the trademarks, which are critical for operating the business. This introduces a potential risk, as the continued use of the Deka Lash brand name and associated trademarks is not guaranteed indefinitely and depends on the relationship between Deka Lash and DL IP Holdings, LLC.