If you own a trademark and are licensing it to another person or entity or if you are the one asking to license the trademark, it is important that this information be clearly laid out in a trademark licensing and franchising agreement in Miami. Only under the careful supervision of an intellectual property lawyer should you enter into such an agreement. This helps ensure that you and the other party have clearly laid out your expectations. The following provisions are a must when it comes to properly drafting a trademark licensing and franchising agreement in Miami.
Obligations of the Parties
The rights and duties of each party should be clearly spelled out in the agreement. This includes information regarding any ongoing payments for the license, royalty fees, indemnification and any other provisions that are necessary to effectuate the understanding of the parties.
In many franchise agreements, there is a provision related to the territory in which the franchise can operate. This leaves other geographic regions open to establish other franchises. At the same time, a territorial provision can also help the individual establishing the franchise feel confident that he or she will not have to compete with another franchise in close proximity.
When licensing a trademark, it is important to state whether other parties will also be able to license it or not. This is incorporated under an exclusivity clause.
Termination and Revocation
The parties should know how long the agreement will last. Additionally, the agreement should spell out any terms of revocation, such as a profit margin under a certain amount. Likewise, the agreement should include information related to any other form of termination. Similarly, if the person who opened the franchise wants to sell or transfer his or her ownership, this information should be included in the agreement.