What rights has Antoinette Sanchez granted regarding the Endless Summer Sweets trademarks?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
er 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.
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third-party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
Superior Prior Rights and Infringing Uses
We do not know of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, Antoinette Sanchez, the owner of the trademarks, has granted Endless Summer Sweets the exclusive right to sublicense the trademarks to franchisees throughout the United States via an Intercompany License Agreement. This agreement has no expiration date and can only be modified with the mutual consent of both parties. The agreement can be terminated by Endless Summer Sweets's affiliate if Endless Summer Sweets materially misuses the trademarks without correcting the misuse, or if Endless Summer Sweets discontinues commercial use of the trademarks for over a year.
Importantly, the Intercompany License Agreement specifies that even if it is terminated, a franchisee's rights will remain unaffected. Endless Summer Sweets is obligated to protect a franchisee's right to use the principal trademarks and defend against claims of infringement or unfair competition arising from their use. Franchisees are required to notify Endless Summer Sweets of any identical or confusingly similar trademark use or claims, though Endless Summer Sweets is not obligated to take action upon notification. Endless Summer Sweets retains the right to control any administrative or legal proceedings involving a trademark licensed to the franchisee.
Endless Summer Sweets states that if a franchisee uses their trademarks in accordance with the franchise agreement, Endless Summer Sweets will defend the franchisee against legal action alleging trademark infringement and will cover expenses and damages if the action is resolved unfavorably to the franchisee. However, Endless Summer Sweets may require a franchisee to modify or discontinue using a trademark, at the franchisee's expense. As of the FDD issuance, Endless Summer Sweets is not aware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks. The principal trademark that Endless Summer Sweets licenses to franchisees is owned by Antoinette Sanchez, with a pending application on the Principal Register of the United States Patent and Trademark Office, application date of November 12, 2022, and serial number 97674811.