Who benefits from the goodwill established by the developer's use of the Marks for Bananas Smoothies Frozen Yogurt?

According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the goodwill that is established through the developer's use of the brand's marks benefits the franchisor, Everything Yogurt Brands, LLC, exclusively. The developer's right to use the marks is strictly limited to the terms outlined in the Area Development Agreement and Franchise Agreements, contingent upon their adherence to system standards. Unauthorized use of the marks by the developer constitutes a breach of contract and an infringement on the franchisor's rights.

This means that while a developer invests time and resources in building brand recognition and customer loyalty in their territory, the resulting goodwill associated with the Bananas Smoothies Frozen Yogurt brand ultimately accrues to the benefit of the franchisor. The agreement explicitly states that neither the Area Development Agreement nor the Franchise Agreements grant the developer any ownership or interest in the marks themselves, beyond the right to operate an EYB Concept in compliance with the agreements.

This arrangement is typical in franchising, where the franchisor owns the brand and trademarks, and franchisees or developers are granted a limited license to use them. This allows Bananas Smoothies Frozen Yogurt to maintain consistent brand standards and protect the value of its intellectual property. Prospective developers should understand that their efforts in promoting the brand primarily benefit the franchisor's long-term brand equity, even as they build their own business.