Who benefits from the goodwill associated with the Marks used by a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
10.04 Benefits of Usage. All usage of the Marks and any goodwill associated with the Marks will exclusively benefit us and our affiliates. All present and future service marks, trademarks, copyrights, service mark registration and trademark registration used or to be used as part of the System, and the associated goodwill, will be the property of us or our affiliates, and will inure solely to our and their benefit. Upon the expiration or termination of this Agreement for any reason, no monetary amount will be assigned as attributable to any goodwill associated with your use of the Marks.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the goodwill associated with the Marks exclusively benefits Crepe De Licious and its affiliates. The FDD specifies that all present and future service marks, trademarks, copyrights, service mark registrations, and trademark registrations used as part of the Crepe De Licious system, along with the associated goodwill, are the property of Crepe De Licious or its affiliates. These benefits accrue solely to Crepe De Licious and its affiliates.
This means that while a franchisee contributes to building brand recognition and customer loyalty through their operation, the resulting goodwill does not translate into equity or financial benefit for the franchisee upon termination or expiration of the franchise agreement. The franchisee cannot claim any monetary amount attributable to the goodwill they helped create during their time operating the Crepe De Licious franchise.
This is a common arrangement in franchising, where the franchisor retains ownership of the brand and its associated intellectual property. It underscores the importance of understanding that franchisees are essentially licensing the use of the brand and system, rather than building equity in an asset they will own outright. This arrangement allows Crepe De Licious to maintain brand consistency and control across all franchise locations, ensuring uniform quality and customer experience, while retaining the long-term value of the brand.