Who owns the goodwill associated with the System and the Marks for Bananas Smoothies Frozen Yogurt?
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, Everything Yogurt Brands, LLC, the franchisor, retains ownership of all goodwill associated with the System and the Marks. The franchise agreement stipulates that any goodwill generated through a franchisee's use of the Bananas Smoothies Frozen Yogurt system and trademarks accrues exclusively to the franchisor's benefit.
This means that while franchisees contribute to building brand recognition and customer loyalty within their territory, the monetary value of that goodwill ultimately belongs to Everything Yogurt Brands, LLC. Upon termination or expiration of the franchise agreement, the franchisee cannot claim any financial compensation for the goodwill they helped create during the term of their agreement.
This is a standard practice in franchising. It ensures that the brand maintains a consistent value and identity across all locations, and that the franchisor can maintain control over the brand's reputation and image. Prospective Bananas Smoothies Frozen Yogurt franchisees should understand that they are investing in a system where the long-term brand equity remains with the franchisor.