A franchise is a contract among 2 parties that provides an individual or group of persons the rights to market a service and product using the logo and trademark of other businesses. it may be the best manner to begin your business during trading under a recognized brand. This article describes all the important information about the Role & Importance of Trademark Registration in Franchising.
Types of Franchise
There are various examples of the franchise and the most famous are possible fast-food restaurants, worldwide brands like McDonald’s or Burger King. Through Franchise Direct, approximately 90% of Burger King restaurants are owned and run by independent franchisees.
Similarly, McDonald’s states on its website that almost 93% of McDonald’s restaurants are opened worldwide and run by independent owners of local businesses.
Franchise and their brands
As a franchisor, the initial lawful right that you would be yielding to your franchisees is accurate to utilize your trademark. Additionally, as a franchisee would be replicating your industry model they would be required to use your logos or trademarks to the marketplace and purchase the services or goods under your brand.
Besides, with the help of Trademark Registration, it would offer legal protection for your franchise scheme trademarks. This registration is of vital significance as the subject theme of your franchise accord with the franchise is the trade name itself. Hence, it follows that the powerful protection of the brand by the franchiser would offer you more power for business.
Process of protecting the Trademark Registration
The process of trademark of all countries may differ, however, they have a common purpose. They aim to offer a right to the holder in which their sign is not descriptive. Depending upon the land in which you are filing, the application may be filed either by an appointed representative or by the trademark owner directly.
However, due to pandemics, the trademark applications volume has fallen and this results in the quickest processing period at the registry.
Franchise contract
When it appears to franchises, official safeguards are in place to maintain consistency, IP protection, and brand control. This contract protects the IP rights used, a brand of the franchise from misleading or misuse, and the business model.
Moreover, the Federal deal commission has assembled a Franchise rule observance guide to help franchisors to comply with the Federal deal commission’s modified franchise rule during drafting their contracts.
Licensing
Another way of granting 3rd party is the utilization of logo and trademark is through a license. This type of lawful relationship is more limited in its scope as compared to franchising. A patent or technology may also be licensed to 3rd parties.
Also, File a trademark application and after the registration of the Trademark successfully a watch may be set up pon mark for full-year using our tool Word Watch. The trademark holder may receive automated alerts to infringing the latest trademark applications by 3rd parties delivered to their inbox. So this enables the franchisor to continually protect the brand’s strength.
Moreover, If you want any other guidance concerning Trademark Registration, please feel free to contact us at 8881-069-069.
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