Does Endless Summer Sweets have any agreements that limit my ability to use the Endless Summer Sweets trademarks?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
the Marks in connection with the business. There are no agreements that significantly limit our rights to use or license you to use the Marks in any manner material to the business.
Agreements
Antoinette Sanchez, our owner, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Antoinette Sanchez, we have been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement has no expiration. It may be modified only by mutual consent of the parties. It may be terminated 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.
Protection of Rights
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We have the right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, there are no agreements that significantly limit the franchisor's rights to license the trademarks to franchisees in a manner material to the business. Antoinette Sanchez, the owner of Endless Summer Sweets, owns the trademarks and has granted Endless Summer Sweets the exclusive right to sublicense these trademarks to franchisees throughout the United States through an Intercompany License Agreement. This agreement has no expiration date and can only be modified by mutual consent.
The Intercompany License Agreement can be terminated by Antoinette Sanchez if Endless Summer Sweets misuses the trademarks and fails to correct the misuse, or if Endless Summer Sweets discontinues commercial use of the trademarks for more than one year. However, the agreement specifies that even if it is terminated, the franchisee's rights will remain unaffected.
Endless Summer Sweets will defend franchisees against legal actions by a third party alleging trademark infringement, provided the trademarks are used in accordance with the franchise agreement. Endless Summer Sweets will also cover expenses and damages if the legal action is resolved unfavorably to the franchisee. However, Endless Summer Sweets retains the right to require franchisees to modify or discontinue using a trademark, at the franchisee's expense.
Endless Summer Sweets states that they are unaware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks. The principal trademark licensed to franchisees has a pending application on the Principal Register of the United States Patent and Trademark Office with a trademark application date of November 12, 2022, and serial number 97674811.