Why You Need a Licensing Attorney

Some of the most well known businesses in the U.S. are franchises.  People buy into the business, giving royalties to the company for use of their trademark, training and services.  This arrangement is sometimes an opportunity to rent or lease a business and not necessarily own one, because a franchise agreement is normally only good for a fixed period of time, which requires renewal.  Franchises can get confusing for people, which is why a licensing lawyer can help.

How Many Franchises Are There?

Some successful franchises in the U.S. include Subway, McDonalds, Great Clips, Dunkin Donuts and 7-Eleven.  These businesses and other franchises provide millions of jobs for people in the United States.

What Do I Do First?

When considering buying into a franchise, you should first contact a licensing lawyer to help you determine several things. First, you will need to have a good feel for the amount of start-up costs that you’ll need, along with an estimate of the required working capital. You will need to know what your obligations will be to the company in order to use their trademark. Even though you’ll be the one taking the risk and using your money to start up the franchise, you’ll be using someone else’s proven trademark and they need to protect that.   For instance, the logos and uniforms that you see employees wear in companies such as Subway or McDonald’s represent their trademark.  In addition to protecting the trademark, you’ll have other duties in a franchise such as purchasing specific materials and supplies in order to protect the brand. 

How Can I Get Help With The Contract?

Because of all of these rules, you will be required to sign a contract in order to use the brand.  This is where a licensing lawyer can really help you.  He or she will be able to explain what is in the contract and what your obligations are, as well as negotiating specifics for your benefit.  For instance, a licensing attorney can make sure that the company does not allow other licensed franchises to open up in a specific area around you, which would cut into your profits.  He or she can also help to ensure that you are getting adequate training from the company, and that the company is protecting you from any trademark infringement.  In short, a licensing lawyer can ensure that you are getting the best deal and making the right decisions for your new business.