Your Trademarks

A trademark is a type of intellectual property  that contains the words or designs used to identify a brand.  The basic purpose of a trademark, is to  identify the source of products and services.  By franchising your business, you are granting a franchisee the right to use your concept’s name, logo, know-how and distinctive phrasing, to operate an independently owned business. 

Franchise Laws

Franchise offerings are regulated by both state law and the Federal Trade Commission.  Specific disclosures and documents must be provided to prospective franchise buyers, before any franchise sales can be made. Required disclosures include: the initial investment required to operate the franchised business, the initial franchise fee charged, royalties payable to the franchisor and identification of the franchisor’s management.  The required disclosures are contained in a Franchise Disclosure Document (“FDD”).  A franchise buyer must have an opportunity to review the FDD, along with a copy of your Franchise Agreement, before purchasing a franchise.

Training

Franchisors  usually require franchisees to complete a training program.  The training program is designed to teach  franchisees the key elements of operating a franchised business.  Training programs may be conducted at the franchisor’s headquarters, at an operating franchise unit, online, or using any combination of these methods. Training sometimes include sending a representative of the franchisor to the location of the new franchisee’s business, to assist in opening.