Who benefits from the goodwill generated by a Batteries Plus Bulbs franchisee's use of the Licensed Marks?

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the franchisor exclusively benefits from the goodwill associated with the use of its licensed marks. Specifically, the franchisee does not retain any rights to the licensed marks or the goodwill generated through their use, either during the term of the Franchise Agreement or upon its expiration or termination. This means that any positive brand recognition or customer loyalty built up by a franchisee's efforts ultimately benefits Batteries Plus Bulbs.

This arrangement is typical in franchising, as the brand's trademarks and associated goodwill are considered the franchisor's intellectual property. Batteries Plus Bulbs retains control over its brand and ensures consistent quality and standards across all franchise locations. This allows Batteries Plus Bulbs to maintain a uniform brand image and protect its reputation.

For a prospective Batteries Plus Bulbs franchisee, this means that while they can leverage the established brand and trademarks to attract customers, they do not build equity in the brand itself. The franchisee's investment in marketing and customer service contributes to the overall goodwill of the Batteries Plus Bulbs brand, but the value of that goodwill accrues solely to the franchisor. This is an important consideration for franchisees, as they should understand that the value they create through brand recognition ultimately benefits Batteries Plus Bulbs rather than themselves.