Who retains the goodwill associated with the My Salon Suite marks?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you the right to operate your Franchised Business under all the applicable Marks and any other trade names, trademarks, service marks, and logos currently used or that may hereafter be used in the operation of a Franchised Business. You must strictly comply with our standards, specifications, rules, requirements, and instructions regarding the use of the Marks. The goodwill associated with our Marks will remain our exclusive property, and you will receive no tangible benefit from our goodwill, except from the operation or possible sale of the Franchised Business during the term of the Franchise Agreement. Any increase in the goodwill associated with the Marks during the term of the Franchise Agreement will benefit us. All rights to use our Marks will automatically revert to us without cost and without the execution or delivery of any documents, upon the expiration or termination of the Franchise Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 56–58)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, My Salon Suite retains exclusive ownership of the goodwill associated with its trademarks. As a franchisee, you are granted the right to operate your franchised business using My Salon Suite's marks, but you will not receive any tangible benefit from the goodwill associated with those marks, except through the operation or potential sale of your franchise during the term of your Franchise Agreement. Any increase in the goodwill associated with the marks during the term of the Franchise Agreement will benefit My Salon Suite.
This means that while you, as a franchisee, may contribute to building brand recognition and positive reputation in your local market, the ultimate value of that goodwill accrues to My Salon Suite. Upon expiration or termination of the Franchise Agreement, all rights to use My Salon Suite's marks automatically revert back to them without any cost or need for documentation.
This is a fairly standard practice in franchising. The franchisor owns the brand and its associated reputation, and the franchisee pays for the right to use it. This arrangement ensures consistency across all franchise locations and protects the brand's overall value. Franchisees benefit from using a recognized brand, while the franchisor maintains control over its trademarks and goodwill.