How to Understand Franchising Trademarks

Trademark law is big business, especially in the world of franchising. Oftentimes, one of the most valuable commodities a franchise has can be its brand identity and the trademarks protecting it. Franchisees pay huge fees for access to trademarked logos and materials associated with certain franchises. Maintaining control of trademarks is the key focus for maximizing profits in many franchised organizations. Without trademarks, some of the most well known international franchises would dilute their market share and brand identity, effectively losing their value.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Attorney experienced in franchise law
• Computer with Internet access

1. Understand your rights to use a franchise's trademarks as laid out in your franchise agreement, lest you exploit the trademark in illegal ways or in a fashion which violates your franchise agreement.

2. Appreciate the need to protect your brand and identity by trade marking your franchise before approaching prospective franchisees. You risk having your ideas and branding stolen and reused without your permission without the proper legal filing and protection under trademark law.

3. Hire an attorney experienced in trademark filing and arbitration to help you understand the details of filing properly for your franchising trademark. You will forego any protections under federal law without it.

4. Protect your franchising venture with proper trademark filing and documentation, and be aware that until this process is complete, your creative, branding and intellectual property are in grave danger of being stolen by other business savvy individuals who may make it their own.

5. Check with the U.S. Patents and Trademark Office to verify a viable, legally registered trademarked is on file for your franchise or the one you're about to enter an agreement with. Franchisors who fail to protect their interests with trademarks are in jeopardy of market dilution and parallel competition, which can sink a business!

6. File your trademark early, as the process can take anywhere from 6 months to a year for completion, and you don't want to be unprotected as you enter the marketplace.

Tips & Warnings

• Obtain written permission for any use of trademark you may find questionable.
• Gaining advance, written permission from the trademark holder can save you thousands in legal fees later.
• Never use a franchise trademark without express written permission. Understand that, in some cases, exploitation and profiteering from illegal use of a trademark can actually spell jail time! Verbal permission can be denied later, so be sure it's spelled out electronically or on paper.

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