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
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
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
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,
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
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
