To whom does the goodwill from the use of the Clean Your Dirty Face trademarks accrue?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
rwise in connection with a website, and then only under the terms we specify.
We license the Marks from Krishna IP ("Trademark Owner"), who owns all rights to the Marks, pursuant to a Trademark License Agreement (the "License Agreement"). The term of the License Agreement began on March 30, 2022 and will continue for 99 years unless terminated. The License Agreement may be terminated (resulting in the loss of our right to use and to sublicense the use of the Marks to you) by mutual agreement of the parties, or by Trademark Owner for a number of reasons, including if we default on any obligations, we are dissolved, make an assignment for the benefit of creditors, become insolvent, consent to appointment of a receiver, or our business is seized. All rights in and goodwill from the use of the Marks accrue to Trademark Owner. Except as described above, no agreement significantly limits our rights to use or sublicense the Marks in a manner material to the franchise.
The following table sets forth the status of applications filed with the U.S. Patent and Trademark Office ("USPTO") on the Principal Register of the principal marks licensed to you.
Source: Item 13 — TRADEMARKS (FDD pages 40–42)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the goodwill generated from the use of its trademarks accrues to Krishna IP, the Trademark Owner. Clean Your Dirty Face licenses the trademarks from Krishna IP under a Trademark License Agreement. This agreement, which began on March 30, 2022, extends for 99 years unless terminated.
This means that while franchisees are granted the right to use the Clean Your Dirty Face trademarks in connection with their CYDF Facial Bars, the ultimate benefit of the brand's reputation and customer recognition belongs to Krishna IP. As a franchisee builds their business and enhances the Clean Your Dirty Face brand in their local market, the increased value of the trademark benefits the Trademark Owner, not the franchisee directly.
This arrangement is fairly common in franchising, where the franchisor (or, in this case, the licensor of the franchisor) retains ownership of the brand and its associated goodwill. It reinforces the importance of the franchisee adhering to the franchisor's standards and guidelines to maintain and enhance the brand's reputation, which ultimately benefits the Trademark Owner. Franchisees must also not contest the validity of Clean Your Dirty Face's and Trademark Owner's ownership of the Marks.
Prospective franchisees should understand that they are contributing to a brand asset they do not own. While they can benefit from the brand's recognition and reputation during the term of their franchise agreement, the long-term value of the goodwill accrues to the Trademark Owner. This is a standard aspect of most franchise systems, but it's crucial to acknowledge when evaluating the potential return on investment in a Clean Your Dirty Face franchise.