To whose benefit does the goodwill arising from a Canine Dimensions franchisee's use of the marks inure?
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, any goodwill that results from a franchisee's use of the Canine Dimensions marks will accrue solely to the benefit of the franchisor, Canine Dimensions Franchising, LLC. This means that while franchisees build recognition and positive reputation for their individual locations using the Canine Dimensions brand, the value associated with that brand recognition ultimately belongs to the franchisor.
This arrangement has significant implications for franchisees, particularly upon termination or expiration of the franchise agreement. The franchisee will not be entitled to any monetary compensation for the goodwill they helped create during the term of their agreement. This is because the franchise agreement grants franchisees only a limited, non-exclusive license to use the Canine Dimensions marks.
Upon expiration or termination of the franchise agreement, the franchisee must cease using the Canine Dimensions marks and system. This includes de-identifying their business by removing all signs, advertising materials, and online presence associated with the brand. This ensures that customers do not confuse the former franchise with an active Canine Dimensions location and that all goodwill remains with the franchisor. This is a standard practice in franchising, as the brand's value is a key asset of the franchisor.