Does the security interest granted to Beyond Juicery Eatery include goodwill?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
24.09 You grant us a continuing security interest in the Collateral listed in this section to secure the payment of all fees and other amounts due to us and to secure your full performance under this Agreement.
A.
Our affiliate, Beyond Juicery Eatery IP, LLC is the exclusive owner of all right, title and interest in and to the Trademarks and the goodwill associated therewith;
- E. Any and all goodwill arising from your use of the Trademarks shall inure exclusively to us and Beyond Juicery Eatery IP, LLC without compensation;
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Beyond Juicery Eatery franchisees grant the company a continuing security interest to secure payment of fees and full performance under the Franchise Agreement. While the specific assets included in this security interest are not detailed in the provided excerpts, the FDD does address the ownership and use of goodwill related to the trademarks.
The FDD states that Beyond Juicery Eatery IP, LLC owns all rights, title, and interest in the trademarks and the goodwill associated with them. Franchisees acknowledge this ownership and agree not to contest the validity of the trademarks. Any goodwill arising from a franchisee's use of the trademarks inures exclusively to Beyond Juicery Eatery and Beyond Juicery Eatery IP, LLC, without any compensation to the franchisee.
This means that while a franchisee builds goodwill by operating their Beyond Juicery Eatery location, that goodwill ultimately benefits the franchisor. Upon termination or transfer of the franchise, the franchisee cannot claim or transfer any value associated with the goodwill they helped create. The franchisor retains all rights to the trademarks and associated goodwill. A prospective franchisee should clarify with Beyond Juicery Eatery what specific assets are included in the security interest beyond the general statement in the FDD.