Who benefits from the goodwill associated with the Brain Balance Marks and Copyrights?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
arks or any other trademarks, service marks, trade names, service names, logos, copyrights, and other marks presently existing or hereafter acquired by COMPANY for use by its franchisees or affiliates.
- 12.02. FRANCHISEE agrees that valuable good will is attached to the Marks, and any copyrights owned by COMPANY which FRANCHISEE is authorized to utilize in connection with the Franchised Business ("Copyrights") and that FRANCHISEE will use the Marks and Copyrights in all forms, whether print, electronic media or otherwise, only in the manner and to the extent specifically permitted by this Agreement or specified by COMPANY.
- 12.03.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance retains the exclusive rights to the goodwill associated with its Marks and Copyrights. While franchisees contribute to building this goodwill through their operation of the franchised business, the benefits from this goodwill primarily inure to Brain Balance. This means that the reputation and positive image associated with the Brain Balance brand ultimately benefit the company.
As a Brain Balance franchisee, you are authorized to use the company's Marks and Copyrights to operate your center. However, this use is non-exclusive, and Brain Balance has the right to allow others to operate businesses under the same Marks on terms they deem appropriate. This highlights that while franchisees play a role in building brand recognition, Brain Balance maintains control over its brand and how it is utilized.
Upon termination of the Franchise Agreement, franchisees must cease using the Brain Balance Marks and Copyrights. This reinforces that any goodwill developed during the franchise term reverts back to the company. While franchisees contribute to the brand's reputation during their operation, they do not gain ownership of the associated goodwill. This is a common practice in franchising, where the franchisor owns the brand and its associated intellectual property.