Does an Angry Chickz franchisee acquire any ownership or goodwill in the Marks through their licensed use?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3 Non-ownership of Marks.
Nothing in this Agreement shall give Franchisee, and Franchisee shall not assert, any right, title or interest in Company's trade dress, or to any of the Marks or the goodwill attributable to the Marks.
Franchisee is granted only a license during the Term to display and use the Marks according to the terms and conditions of this Agreement.
All goodwill accrued by, and due to, Franchisee's use of the Marks anywhere shall be the sole and exclusive property of Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees do not acquire any ownership of the brand's trademarks or associated goodwill. Specifically, the agreement states that franchisees cannot assert any right, title, or interest in Angry Chickz's trade dress or trademarks. Franchisees are only granted a license to use and display the marks during the term of the agreement, adhering to its terms and conditions.
Furthermore, the FDD stipulates that all goodwill accrued through the franchisee's use of the Angry Chickz marks becomes the sole and exclusive property of the company. This means that any positive brand recognition or customer loyalty generated by the franchisee's operations ultimately benefits Angry Chickz, not the franchisee. This is a common practice in franchising, as it ensures brand consistency and protects the franchisor's intellectual property.
This provision has significant implications for prospective Angry Chickz franchisees. It clarifies that the franchisee's rights to use the brand's trademarks are limited to the duration of the franchise agreement. Upon expiration or termination of the agreement, the franchisee must discontinue all use of the trademarks, and Angry Chickz is authorized to take necessary actions to enforce this. Therefore, franchisees should be aware that building a successful Angry Chickz location does not translate into ownership of the brand or its associated goodwill.