What right does Expense Reduction Analysts have under the License Agreement with Evercertain Limited?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
We derive the right to use the Mark from a license agreement we entered into with Evercertain Limited effective as of January 3, 2020 (the "License Agreement"), in accordance with and pursuant to a separate license agreement entered into between Evercertain Limited and MICO, also effective January 3, 2020. Under the License Agreement, we have the right to use the Marks, as well as license third parties the right to use the Marks to operate Franchised Businesses.
MICO, does not have a federal registration for some of the above trademarks. Therefore, these trademarks do not have many legal benefits and rights as federally registered trademarks do. If our right to use these trademarks is challenged, you may have to change to an alternative trademark, which may increase your expenses.
All required affidavits relating to the Mark detailed in the chart above has been filed. There are currently no effective determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court; no pending interference, opposition or cancellation proceedings; nor any pending material litigation involving any the Marks. Currently, there is no litigation pending or otherwise that limits our ability to use or license the Marks to you or any other franchisee. There are no
Source: Item 13 — TRADEMARKS (FDD pages 38–39)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the company's right to use its trademarks is derived from a license agreement with Evercertain Limited, effective January 3, 2020. This agreement allows Expense Reduction Analysts to use the Marks and to license third parties, such as franchisees, to use the Marks to operate Franchised Businesses. This means that Expense Reduction Analysts is authorized to grant franchisees the right to use its brand name and associated logos in their business operations.
However, the FDD also notes that MICO does not have a federal registration for some of the trademarks. This could pose a risk to franchisees, as these trademarks may not have the same legal protections as federally registered trademarks. If the right to use these trademarks is challenged, franchisees may be required to switch to an alternative trademark, potentially increasing their expenses. Expense Reduction Analysts states that there are no current determinations of the USPTO, Trademark Trial and Appeal Board, or any court that would limit their ability to license the marks to franchisees.
It is important for prospective Expense Reduction Analysts franchisees to understand the terms and conditions surrounding the use of the trademarks. Franchisees must strictly comply with Expense Reduction Analysts's standards, policies, specifications, rules, requirements, and instructions regarding the use of the Marks. The goodwill associated with the Marks remains the exclusive property of Expense Reduction Analysts, and any increase in goodwill during the term of the Franchise Agreement will benefit Expense Reduction Analysts. Upon expiration or termination of the Franchise Agreement, all rights to use the Marks automatically revert to Expense Reduction Analysts without cost.
In practical terms, this means that while franchisees can benefit from using the Expense Reduction Analysts brand, they do not own any part of the brand equity. They are essentially renting the brand for the duration of their agreement. Furthermore, franchisees must be vigilant about protecting the brand and notifying Expense Reduction Analysts of any unauthorized use of the Marks. While Expense Reduction Analysts is not required to defend franchisees against claims, they will reimburse expenses incurred in legal proceedings disputing authorized use of any Mark, provided the franchisee complies with the Franchise Agreement and Expense Reduction Analysts's directives.