Who benefits from the goodwill established by a Cool Binz franchisee's use of the Marks?

According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz, and/or its affiliates, retain all rights to the Marks. As a franchisee's right to use the Marks is derived from the Franchise Agreement, their use must comply with the agreement and all System Standards. Cool Binz designates the specific Marks for franchisee use and authorizes the manner of their use.

The agreement specifies that the goodwill established by a franchisee's use of the Marks benefits Cool Binz exclusively. The agreement does not confer any goodwill or other interest in the Marks to the franchisee, beyond the right to operate a Cool Binz Business under the Franchise Agreement. Upon expiration or termination of the Franchise Agreement, the franchisee will not receive any monetary compensation attributable to any goodwill associated with their use of the System and the Marks.

This arrangement is typical in franchising, where the franchisor owns the brand and trademarks, and the franchisee pays for the right to use them. This clause emphasizes that any positive reputation or brand recognition developed through the franchisee's efforts ultimately benefits Cool Binz, not the individual franchisee as an asset they can later sell or be compensated for. Prospective franchisees should understand that building a strong local presence primarily increases the value of the Cool Binz brand, and not an asset owned by the franchisee.