To whom does the goodwill from the use of the Dryject Marks accrue?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Franchise Agreement provides that any use of the Marks that is not authorized is an infringement. You may not use the Marks as part of your corporate or other legal name, website address, e-mail address, domain name or other identification in any print, electronic or other medium, or with any prefix, suffix or other modifying word, term, symbol or design without our consent. All rights in, and goodwill from, the use of the Marks accrue solely to us.
Because your telephone listings will be associated with the Marks, we will own all rights to the telephone listings, and all goodwill generated from the use of the telephone listing will inure to our benefit.
We may substitute different Marks to identify the business conducted under the DryJect® System if we can no longer use or license the Marks, or if we decide that substitution of different Marks is good for the business. If that happens, you must make the modifications required by us within a reasonable time after you are notified that we have decided to substitute different trademarks to identify your Franchised Business and you will be responsible for your tangible costs of complying (for example, changing signs or advertising materials). You must not directly or indirectly contest our right to our Marks, trade secrets or business techniques that are part of our business.
Source: Item 13 — TRADEMARKS (FDD pages 35–36)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, all goodwill generated from the use of Dryject's marks accrues solely to Dryject. This means that any positive reputation or customer recognition associated with the Dryject brand name, logos, and other trademarks benefits Dryject, not the franchisee. Additionally, because telephone listings will be associated with the marks, all goodwill generated from the use of the telephone listing will inure to Dryject's benefit.
For a prospective Dryject franchisee, this means that while they are building a business using the Dryject name and system, the long-term brand equity remains with the franchisor. This is a standard practice in franchising, as it ensures the franchisor maintains control over the brand and its reputation. It also means that if a franchisee decides to sell their franchise or if the franchise agreement is terminated, the value of the brand recognition they helped create does not translate into increased value for their business, as the goodwill belongs to Dryject.
This arrangement is typical in franchise agreements. The franchisee pays for the right to use the established brand and system, but the franchisor retains ownership of the intellectual property and the goodwill associated with it. This protects the integrity and consistency of the brand across all franchise locations.
Dryject also maintains the right to substitute different marks to identify the business conducted under the DryJect® System if they can no longer use or license the Marks, or if they decide that substitution of different Marks is good for the business. If that happens, the franchisee will be responsible for their tangible costs of complying (for example, changing signs or advertising materials).