What is the term or expiration date of the Intercompany License Agreement for Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the Intercompany License Agreement between Endless Summer Sweets and Antoinette Sanchez, the owner of the trademarks, has no expiration date. This agreement grants Endless Summer Sweets the exclusive right to sublicense the trademarks to franchisees throughout the United States.
The agreement can only be modified with the mutual consent of both parties. However, the agreement can be terminated by Antoinette Sanchez if Endless Summer Sweets materially misuses the trademarks and fails to correct the misuse, or if Endless Summer Sweets discontinues commercial use of the trademarks for a continuous period of more than one year.
Importantly, the Intercompany License Agreement specifies that even if it is terminated, a franchisee's rights will remain unaffected. This provides a level of security for franchisees, ensuring their ability to continue operating under the Endless Summer Sweets brand even if the licensing agreement between the company and the trademark owner is terminated.