What happens to any and all goodwill associated with the Bananas Smoothies Frozen Yogurt System and the Marks?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
As between the parties, Franchisee acknowledges Franchisor's ownership of all right, title, and interest in and to the Marks, the identification schemes, standards, specifications, operating procedures, and other concepts embodied in the System.
Franchisee accordingly agrees that any unauthorized use of the System and the Marks is and shall be deemed an infringement of Franchisor's rights; that, except as expressly provided by this Agreement, Franchisee acquires no right, title, or interest therein; that any and all goodwill associated with the System and the Marks shall inure exclusively to Franchisor's benefit; and that, upon the expiration or termination of this Agreement, no monetary amount shall be assigned as attributable to any goodwill associated with Franchisee's use of the System and the Marks.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the goodwill associated with the Bananas Smoothies Frozen Yogurt System and its Marks inures exclusively to the benefit of the franchisor, Everything Yogurt Brands, LLC. This means that any positive reputation, brand recognition, or customer loyalty generated through the franchisee's operation of the Bananas Smoothies Frozen Yogurt business ultimately benefits the franchisor.
Specifically, the FDD states that the franchisee acknowledges the franchisor's ownership of all rights, titles, and interests in the Marks, identification schemes, standards, operating procedures and other concepts embodied in the system. The franchisee's unauthorized use of the Bananas Smoothies Frozen Yogurt system and marks is considered an infringement of the franchisor's rights.
Upon the expiration or termination of the Franchise Agreement, the franchisee will not be assigned any monetary amount attributable to the goodwill associated with their use of the Bananas Smoothies Frozen Yogurt system and marks. This is a common practice in franchising, as the brand and system are owned by the franchisor, and the franchisee is essentially renting the right to use them. This clause protects the franchisor's investment in building the brand and ensures that the value of the brand remains with the franchisor, not the individual franchisee, when the franchise relationship ends.