Who benefits from the goodwill associated with the Marks and Copyrights used by a Brain Balance franchisee?

According to Brain Balance's 2025 Franchise Disclosure Document, the franchise agreement states that the Brain Balance business, when operated according to the System and utilizing the Marks, acquires valuable goodwill among the public. This goodwill primarily benefits Brain Balance itself. The agreement emphasizes that the franchisee acknowledges the value of this goodwill.

While the franchisee contributes to building this goodwill through operating their center, the agreement ensures that the franchisor retains control over the use of the Marks and associated advertising. For example, franchisees must adhere to Brain Balance's instructions regarding the appearance of the Marks in any form of media and cannot use the Marks for any purpose other than operating a Brain Balance Center as specifically permitted by the franchise agreement.

Upon termination of the franchise agreement, the franchisee must cease using the Brain Balance names and Marks, reinforcing that the goodwill remains with Brain Balance. This is a common practice in franchising, where the brand's reputation and recognition are crucial assets owned and protected by the franchisor.