Who benefits from the goodwill arising from a Cicis franchisee's use of the Marks?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) All goodwill arising from your use of the Marks and the System will inure solely to our and our affiliates' benefit, and on expiration or termination of this Agreement, no monetary amount will be attributable to any goodwill associated with your use of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the goodwill generated from a franchisee's use of Cicis's trademarks and the overall system exclusively benefits Cicis and its affiliates. This means that as a franchisee operates and builds a customer base, enhancing the brand's reputation and recognition, the resulting goodwill accrues solely to the franchisor.
For a prospective Cicis franchisee, this has significant implications. Upon the expiration or termination 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 a standard practice in franchising, where the brand and its associated reputation are owned by the franchisor, allowing for consistent brand management across all franchise locations.
Cicis retains the right to add, modify, or discontinue any trademarks used by the franchisee, and the franchisee is obligated to comply with these changes at their own expense. This further emphasizes that Cicis maintains complete control over its brand and image, and the franchisee's rights are limited to the usage explicitly granted in the franchise agreement. The franchisee must also provide any assistance or documentation reasonably requested by Cicis to protect its rights to the trademarks.