Upon expiration or termination of the Cool Binz agreement, will any monetary amount be assigned to the goodwill associated with the franchisee's use of the Marks?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
A. OWNERSHIP AND GOODWILL OF MARKS.
-
- You acknowledge that we and/or our affiliate own and have all rights to the Marks.
-
- Your right to use the Marks is derived only from this Agreement and is limited to your operation of the COOL BINZ Business in accordance and in compliance with this Agreement and all System Standards we prescribe from time to time during its term.
-
- You must use only the Marks that we designate in writing, and to use them only in the manner that we authorize.
-
- You agree that your use of the Marks, and any goodwill established by this use, will be exclusively for our benefit and that this Agreement does not confer any goodwill or other interest in the Marks upon you (other than the right to operate a COOL BINZ Business under this Agreement). Upon expiration or termination of this Agreement, no monetary amount will be assigned as attributable to any goodwill associated with your use of the System and the Marks,
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, no monetary amount will be assigned for goodwill associated with the franchisee's use of the Cool Binz marks upon expiration or termination of the franchise agreement. The agreement explicitly states that the franchisee's use of the marks and any goodwill established by this use will be exclusively for the benefit of Cool Binz. The franchise agreement does not confer any goodwill or other interest in the marks to the franchisee, other than the right to operate a Cool Binz business under the agreement.
This means that when a Cool Binz franchise agreement ends, the franchisee will not receive any compensation for the value or reputation they have built up in their territory through the use of the Cool Binz brand. The goodwill remains the property of Cool Binz.
This is a standard practice in many franchise systems. Franchisees are granted the right to use the franchisor's trademarks and systems, but the underlying value of the brand typically remains with the franchisor. This is an important consideration for prospective franchisees, as it means they will not be able to monetize the goodwill they have built up when they exit the system.