Trademark FAQ’s

WHAT IS A TRADEMARK? A trademark identifies your business, services, or goods. A trademark can be a name, symbol, design, sound, or even a smell, used to identify the source (manufacturer, producer, service provider) of particular goods or services.  Some famous examples include Google, McDonald’s golden arches, Nike’s swoosh, and

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Affiliates and Franchising

 I hear the term “affiliate” a lot.  What does that mean and how does it relate to franchising? “Affiliate” means under common ownership or control. Let’s say you have a successful flagship company store, Bob’s Subs, LLC.  And Bob’s Subs, LLC has operated for 5 years very successfully.  You now

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Differences between Unit, Area and Master Franchises

I have heard the terms “Unit” franchise, “Area Representative,” and “Master Franchise.”  What is the difference? A Unit franchise refers to someone who owns and operates an outlet, like a sandwich shop. An Area Representative, which is also a franchise relation, refers to someone who purchases rights to a large

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Franchising vs Licensing

For some businesses, the process of franchising seems too difficult and they would rather just license their brand and system through a license agreement.   The difference between a license and a franchise is important to consider when establishing business relationships.  Otherwise, license agreements could be considered illegal franchises.   In general,

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Financial Performance Representations

I now have my FDD issued and am selling franchises. A prospect has asked me how much money they should expect to make. Can I tell them? The laws on Financial Performance Representations (“FPRs”), previously called “earnings claims,” can be tricky. Here are some of the general rules: A “financial

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What is the 14 day hold on an FDD?

What is the 14 day hold on an FDD and how does a franchisor count the required 14 day hold that a franchise prospect must have on an FDD? Under federal law, and the law of most states which have franchise laws, in order to enter into a franchise agreement

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