A franchise owner gains access to intellectual property

Generally speaking, intellectual property and trade secrets are very well-protected in corporate America. Businesses are bound by laws, regulations and codes of conduct. Violations -- such as using someone else's trademark without permission -- can be prosecuted.

The benefit of becoming a franchise owner is not typically in material goods. Most owners still need to buy their own property, pay for the construction of the store, hire their own employees and front the costs that any other business owner would need to pay.

The benefit, then, lies in that intellectual property and the fact that the franchisee is not bound by the same laws that an independent owner would be. The franchisee is allowed to use protected logos and other trademarks. Business plans are handed out. Standards are agreed upon. The franchisee often gets training from the franchisor and may even buy materials directly from that owner. This is important in the restaurant business, for example, so that customers know exactly what to expect from their meals.

Clearly, this system offers a number of potential benefits to the franchisee, such as the benefit of national advertising that helps get the franchisee business even though he or she does not have to pay for any of it.

However, it is very important for both the franchisee and the franchisor to know exactly what rights and obligations each party has. This relationship helps get around many prohibitive business laws, but neither side should ever assume anything about the contract and the relationship. It's also crucial for those who believe a contract has been violated to know what options they have.

Source: Entrepreneur, "The Rules and Regulations of Being a Franchisor," Mark Siebert, accessed March 14, 2018

No Comments

Leave a comment
Comment Information

Hear From Our Clients

Mr. Skolnik and Mr. Gaboury have represented me on multiple cases over the past two years. They are dependable, knowledgeable, and professional. They provided high quality legal guidance for my small business during a difficult time and brought me a peace of mind. I highly recommend Cox Padmore Skolnik & Shakarchy as your legal business representative. -Anonymous

Read More Reviews

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Tap To Request An Exploratory Consultation

New York Office
630 Third Avenue
19th Floor
New York, NY 10017

Phone: 646-355-1648
New York Office Map

Great Neck Office
98 Cutter Mill Road
Suite 310N
Great Neck, NY 11021

Phone: 646-355-1648
Great Neck Office Map

Hackensack Office
27 Warren Street
Suite 304
Hackensack, NJ 07601

Phone: 646-355-1648
Hackensack Office Map

Denver Office
1060 Humboldt Street
Denver, CO 80218

Phone: 646-355-1648
Denver Office Map