Who is the licensor in the Intercompany License Agreement for the Desi District trademarks?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Desi District, LLC, our affiliate, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Desi District, 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 40–42)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District, LLC, which is an affiliate of the franchisor, owns the trademarks. The franchisor has been granted the exclusive right to sublicense these trademarks to franchisees throughout the United States through an Intercompany License Agreement with Desi District, LLC. This agreement is perpetual and can only be modified with the mutual consent of both parties.
Desi District, LLC can cancel the Intercompany License Agreement if the franchisor materially misuses the trademarks and fails to correct the misuse, or if the franchisor discontinues commercial use of the trademarks for a continuous period of more than one year. However, the agreement specifies that even if it is terminated, a franchisee's rights will remain unaffected.
This arrangement is typical in franchising, where a separate entity often holds the intellectual property and licenses it to the franchising company. This structure can provide certain legal and financial benefits to the franchisor. For a prospective Desi District franchisee, this means that while the trademarks are licensed, their right to use them under the franchise agreement is protected even if the Intercompany License Agreement is terminated.