What happens to the goodwill associated with the Alloy Trademarks?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The Trademarks are our Affiliate's valuable property, and our Affiliate is the owner of all right, title and interest in and to the Trademarks and all past, present or future goodwill of the Facility and of the business conducted at the Facility that is associated with or attributable to the Trademarks.
Your use of the Trademarks will inure to our Affiliate's benefit.
You may not, during or after the term of this Agreement, engage in any conduct directly or indirectly that would infringe upon, harm or contest our rights in any of the Trademarks or the goodwill associated with the Trademarks, including any use of the Trademarks in a derogatory, negative, or other inappropriate manner in any media, including but not limited to print or electronic media.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy FDD, the goodwill associated with the Alloy Trademarks belongs to Alloy's affiliate. As a franchisee, any goodwill generated through the use of the Alloy Trademarks at your facility will accrue to the benefit of Alloy's affiliate. This means that the value and reputation built by your business under the Alloy brand ultimately benefit the franchisor, not the franchisee.
The FDD emphasizes that franchisees cannot take any actions that could harm or contest Alloy's rights to the trademarks or the associated goodwill, either during or after the franchise agreement term. This includes refraining from using the trademarks in any negative or inappropriate manner across any media platforms. This restriction ensures that the brand's reputation remains protected and consistent across all franchise locations.
Upon termination or expiration of the franchise agreement, the franchisee must cease all operations under the Alloy name and cannot represent themselves as a current or former developer, except for existing facilities still operating under a valid agreement. The franchisee is also required to cancel or assign any assumed names or registrations containing the Alloy name or trademarks to Alloy or its designee. This further reinforces that all rights and benefits associated with the Alloy brand, including goodwill, revert back to the franchisor upon termination of the agreement.