Intellectual Property

The strength of a franchise organization is almost always the use of the same trade name and brand. The names of many franchise formulas are therefore generally known to the public. This familiarity gives the (starting) franchisee a head start.

In most cases, the franchisor or another entity affiliated with the franchisor owns or is entitled to use the franchise organization’s trade name and/or brand.

With the conclusion of the franchise agreement, the franchisee almost always gets the exclusive right to use the trade name and brand for his company. Because the intellectual property rights within a franchise organization often represent a significant value, it is very important for the franchisor to protect those rights.

The franchisor can, for example, register the word and figurative mark in the Benelux Trademark Register. It is also important that the franchisor and franchisee properly record how they deal with (for example) the situation in which a third party infringes that right or the situation in which the franchise relationship ends and the franchisee must cease using those rights. This can be arranged in the franchise agreement and in the handbook.

Basically, both the franchisor and the franchisees will be confronted with intellectual property law in their franchise relationship. Ludwig & Van Dam franchise attorneys will of course be happy to assist you in recording and organizing this.

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