Branded Retail Stores Sample Clauses

Branded Retail Stores. 4.1. All Branded Retail Store locations and designs shall be consistent with the reputation and quality of the Licensed Marks, which such quality level shall be deemed to be substantially the level in existence during the 12-month period prior to the Effective Date unless otherwise mutually agreed by the parties. The rights being granted with respect to Branded Retail Stores are that of a license for use and not a franchise, and the parties do not intend to, nor should these rights for Branded Retail Stores be construed to, create a franchisor/franchisee relationship. The Branded Retail Stores in the Exclusive Territory must each carry at least 10% Products branded with the Licensed Marks (the “Retail Minimum Product Threshold”), provided that in the event that Licensee fails to maintain the Retail Minimum Product Threshold, then Licensee’s rights in the Exclusive Territory with respect to Branded Retail Stores shall become non-exclusive from and after such time. 4.2. During the First Annual Period and Second Annual Period, Licensee shall be required to have a minimum of fifty (50) Branded Retail Stores open and operational in the Exclusive Territory, with at least five (5) of those Branded Retail Stores being mainline/flagship stores. If at any time during the First Annual Period or Second Annual Period, Licensee fails to have at least fifty (50) Branded Retail Stores open and operational in the Exclusive Territory or at least five (5) mainline/flagship Branded Retail Stores open and operational in the Exclusive Territory, Licensee shall be in material breach of this Agreement and Licensor shall have right to terminate this Agreement upon written notice to Licensee if such applicable minimum threshold is not restored within ninety (90) days of the date of written notice from Licensor. 4.3. During the Third Annual Period and Fourth Annual Period, Licensee shall be required to have a minimum of twenty-five (25) Branded Retail Stores open and operational in the Exclusive Territory, with at least five (5) of those Branded Retail Stores being mainline/flagship stores. If at any time during the Third Annual Period or Fourth Annual Period, Licensee fails to have at least twenty-five (25) Branded Retail Stores open and operational in the Exclusive Territory or at least five (5) mainline/flagship Branded Retail Stores open and operational in the Exclusive Territory, Licensee shall be in material breach of this Agreement and Licensor shall have right to terminate t...
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Related to Branded Retail Stores

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