A Proven business model to be taken to different locations. Thus, requires a clear understanding of licensing terms involved with its franchise agreement intellectual properties rights. Intellectual property for franchise business includes trademarks, copyrights, know-how, trade secrets, business concepts, methodologies, designs, promotional materials, marketing systems, logos, patents, etc., The franchising concept involves more than just the protection of Intellectual property rights. The franchise industry requires the right ecosystem.
The relationship between franchisor, franchisee and third parties involved in franchising. The Trademark registration in multiple countries should enable a franchisor to manage and renew through centralized systems. The International Design system which includes registered industrial designs should enable your management to record and renew changes in multiple countries with much ease. Understanding the Costs associated with Patent Protection in different countries is also important.
Basically, there are two types of franchised business:
- Product & Trade name franchising wherein the franchisee uses the franchisor’s trade name (including trademarks) to sell franchisor’s products or services.
- Business format franchising in which the franchisee uses the franchisor’s complete business concept (trademarks, goodwill, trade secrets, etc.,). So, to summarize franchising is a technique of sharing systematically the franchisor’s Intellectual property to distribute its products and services.
Indian laws do not have a particular Franchise Protection Act India. Protection laws are governed by provisions in the franchise agreement. That is why it is all the more vital to give emphasis to the legal documentation in India Whether it is concerned with the franchise territory protection, franchise investment protection, the franchise agreement sets out guidelines of do’s and don’ts.
Franchise without Trademark lose out on competitors who duplicate the logo, product, business model. This leads to the overall loss of customers and loyalty towards the brand. So, safeguard your business, Trademarks are essential components.
Reach out to our consultants for assistance in licensing the franchise intellectual property.