Who owns the Lees Famous Recipe Marks?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marks are owned by our Parent, which has granted us a license to use and license franchisees to use the marks effective June 21, 2021 (the "Trademark License Agreement"). The Trademark License Agreement is effective indefinitely unless terminated at the option of either party. Our Parent may terminate the Trademark License Agreement if our misuse of the Marks materially impairs the goodwill associated with the Marks, if we violate any of our Parent's instructions concerning the quality of the Marks, or if we fail to perform any other obligation under the Trademark License Agreement, and we fail to cure such breach within 30 days. If the Trademark License Agreement terminates, any then-existing sublicenses (franchises) will automatically be assigned to our Parent and will continue for the term of the sublicenses, provided that the franchisees comply with all other terms of their Franchise Agreements. The Trademark License Agreement contains no other material limitations.
Source: Item 13 — TRADEMARKS (FDD pages 50–52)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the Marks are owned by their Parent company. However, Lees Famous Recipe has been granted a license to use and sublicense the marks to franchisees, effective June 21, 2021, through a Trademark License Agreement. This agreement remains effective indefinitely unless terminated by either party.
The Trademark License Agreement can be terminated if Lees Famous Recipe misuses the Marks in a way that significantly harms the goodwill associated with them, violates the Parent's instructions regarding the quality of the Marks, or fails to fulfill any other obligation under the agreement and does not remedy the breach within 30 days.
In the event that the Trademark License Agreement is terminated, the existing franchise agreements (sublicenses) will automatically be transferred to the Parent company. These franchises will continue for the remainder of their terms, provided that the franchisees adhere to all other terms outlined in their Franchise Agreements. This arrangement ensures continuity for franchisees even if the licensing agreement between Lees Famous Recipe and its Parent is discontinued.