What happens to the goodwill arising from the Canine Dimensions franchisee's use of the marks?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3.2 As between the parties, Franchisor has the exclusive right and interest in and to the Marks and the goodwill associated with and symbolized by them. Franchisee's use of the Marks pursuant to this Agreement does not give Franchisee any ownership or other interest in or to the Marks, except the limited, non-exclusive license granted by this Agreement. Any and all goodwill arising from Franchisee's use of the Marks in its franchised operation under the System shall inure solely and exclusively to Franchisor's benefit, and upon expiration or termination of this Agreement and the license herein granted, no monetary amount shall be assigned as attributable to any goodwill associated with Franchisee's use of the System or the Marks.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, Canine Dimensions retains all rights to the goodwill associated with its marks. As stated in the franchise agreement, Canine Dimensions has the exclusive right and interest to the marks and the goodwill that is symbolized by them.
The agreement specifies that the franchisee's use of Canine Dimensions's marks does not give the franchisee any ownership or other interest in the marks, except for the limited, non-exclusive license granted in the agreement. This means that while franchisees are authorized to use the Canine Dimensions marks to operate their franchise, they do not gain any proprietary rights to the marks themselves.
Furthermore, any goodwill that arises from the franchisee's use of the marks in their franchised operation under the Canine Dimensions system accrues solely and exclusively to the benefit of Canine Dimensions. Upon the expiration or termination of the franchise agreement, no monetary amount will be assigned to the franchisee that is attributable to any goodwill associated with the franchisee's use of the system or the marks. This is a common practice in franchising, as the brand and its associated goodwill are typically considered the franchisor's assets.