Who benefits from any increase in the goodwill associated with Fitstop Marks during the Franchise Agreement term?

According to Fitstop's 2024 Franchise Disclosure Document, any increase in goodwill associated with Fitstop's marks during the term of the Franchise Agreement will benefit Fitstop. While franchisees may benefit from the operation or possible sale of their franchised business during the agreement, they do not receive any tangible benefit from the goodwill itself.

This means that while a franchisee's efforts may contribute to enhancing the Fitstop brand's reputation and value, the franchisor ultimately reaps the rewards of that increased goodwill. Upon expiration or termination of the Franchise Agreement, all rights to use Fitstop's marks automatically revert back to Fitstop without any cost or required documentation from the franchisee.

This is a fairly standard arrangement in franchising, as the franchisor owns the brand and its associated intellectual property. Franchisees are essentially renting the brand and its systems for a specific period. Therefore, it is crucial for prospective Fitstop franchisees to understand that building the brand's reputation primarily benefits the franchisor, especially in the long term.