Who owns the goodwill accrued by an Angry Chickz franchisee's use of the Marks?

According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains sole ownership of all goodwill associated with the use of its trademarks (the Marks). The agreement explicitly states that franchisees do not acquire any rights to the goodwill generated through their use of the Angry Chickz Marks. Franchisees are only granted a license to use and display the Marks during the term of the franchise agreement, in accordance with the terms and conditions outlined in the agreement.

This means that while an Angry Chickz franchisee operates their business and builds a reputation under the Angry Chickz brand, the value of that brand recognition ultimately benefits Angry Chickz. The franchisee cannot claim ownership of any of the goodwill generated through their efforts. This is a standard practice in franchising, as it ensures the franchisor maintains control over its brand and protects its value across all franchise locations.

This provision has significant implications for a franchisee, particularly upon termination or non-renewal of the franchise agreement. Since the franchisee does not own the goodwill, they cannot transfer or sell it. The goodwill remains with Angry Chickz, and the franchisee must discontinue using the Marks. This underscores the importance of understanding the terms of the franchise agreement and the respective rights and obligations of both the franchisor and the franchisee.