Upon termination of the Canine Dimensions franchise agreement, is any monetary amount assigned to goodwill associated with the 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, the franchisor retains all goodwill associated with the use of its marks. The agreement explicitly states that upon termination or expiration of the franchise agreement, no monetary amount will be assigned to the franchisee for any goodwill they may have generated through their use of the Canine Dimensions marks. This means that any value built up in the business name and reputation during the franchise term accrues solely to the benefit of Canine Dimensions.
This provision is standard in many franchise agreements. It ensures that the brand's overall value remains with the franchisor, regardless of individual franchisee performance. When a franchisee leaves the system, they cannot claim any financial stake in the brand equity they helped create within their territory. This protects the integrity and consistency of the Canine Dimensions brand across all locations.
For a prospective Canine Dimensions franchisee, this means that building a strong local reputation is beneficial for their business while they operate the franchise, but it does not translate into a saleable asset upon exiting the franchise system. The franchisee will not be compensated for the goodwill they developed. Therefore, franchisees should focus on maximizing their profits during the term of the agreement, understanding that the goodwill they build primarily benefits the franchisor in the long term.