To whose benefit does all goodwill arising from a Cicis franchisee's use of the Marks inure?
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, all goodwill that results from a franchisee's use of Cicis's trademarks and system will accrue solely to the benefit of Cicis and its affiliates. This means that any positive brand recognition, customer loyalty, and overall reputation developed through the franchisee's efforts using Cicis's branding will ultimately benefit Cicis.
This has significant implications for a prospective franchisee. Upon 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. In other words, the franchisee cannot claim any financial stake in the increased brand value they contributed to while operating their Cicis restaurant.
This arrangement is fairly standard in the franchise industry, as the franchisor owns the trademarks and system that the franchisee is licensing. It reinforces that the franchisee's rights to use the Marks are derived solely from the Franchise Agreement and that Cicis retains ownership of the brand and associated goodwill. Cicis also reserves the right to modify or discontinue any Marks used by the franchisee, and the franchisee must comply with Cicis's directions in this regard at their own expense.