What role does a trademark or servicemark have in franchising?
Franchising is an important way of doing business that frequently involves licensing of trademarks, servicemarks, logos, copyrights and trade secrets. A Franchisor will typically license intellectual properties, including trademarks, to a Franchisee in exchange for substantial control of a business and continuing royalties for such use. The Franchisee will benefit from brand identification (such as McDonalds or Subway) and goodwill among the consuming public. Franchises are an important way that business owners can use trademarks, but franchises are also heavily regulated by taxing authorities, the Federal Trade Commission and State authorities.
