Franchising Legal Aspects – Low Interest

With franchising you are giving up the right to exploit your brand, so it is best to redouble your attention. Franchising networks are ways to bring success models to the world.

The legal bases of franchising

The legal bases of franchising

When we talk about franchising we are talking about a brand that has:

  • Your name;
  • Your business model when we think of big franchises;
  • Its layout and structure (the way the business is assembled in space), ceded to the franchisee.

In this way legal issues are fundamental to establish and determine the relationship between the owner of the mark and who comes to give it.

For legal issues we are talking about the determinations of conduct and behavior of each one within the franchise, as well as judicial techniques to circumvent possible litigation that may arise.

It is part of the legal bases of a franchise, determine the payment to the trademark holder, the tax responsibilities of the franchisee, among other things.

We separate here the main points that you should know and consider before you start offering your business model.

What should I worry about before I give away a franchise license for my business?

What should I worry about before I give away a franchise license for my business?

The first point to which you must support is the intellectual property of your brand.

Do you have a record of your brand, your business model? This is the first step for you to make your venture into a franchise.

A brand is what makes the consumer differentiate one product from another in the market, for example if we see a silver apple with a missing slice we know that this is Apple.

To prevent your brand from suffering in the future with litigation over who owns it, who owns the brand, or even if the franchisee registers the business once you have not done so, it is still important that you register for the brand.

In Brazil it is only possible to register visually recognizable brands, for example Apple apple or Google Android. It is not possible to record a sound in our country, for example.

In order to register the trademark in Brazil, the process can be done directly by the entrepreneur through INPI, National Institute of Industrial Property. To register your trademark, through the INPI online site, the process comes out cheaper, something around $ 400.00.

You are protected by copyright

The layout and visual appeals of your enterprise are protected

From the moment you register a trademark legally it becomes your intellectual property, and in this way is protected by copyright.

With this in mind, when you give away a franchise license to the franchisee, you can end up giving away the company’s layout, mascot, colors, product placement in space, (think of the famous fast food chain, they are all equal is not it?) With copyright protection, all these creations, your properties will be protected.

With all these risks what are the advantages of franking my business?

The main advantage of franchising is being able to increase the visibility of the brand, leading it to more people who will be directly affected by the franchise open.

This is every entrepreneur’s dream, is not it? Make the brand better known, and possibly, in this way, significantly increase your sales.

What do I need to know before franking my business?

In addition to registering your brand to avoid possible headaches, you need to prior to franchising your business that you know that you need to tweak the franchise business, in addition to doing the simple, to be able to account for the collection amounts.

Every franchisor (one who licenses his or her brand to a third party) must be a good person manager, since the franchisee (the one who has the right to exploit the brand image) will need full support at the beginning to open and stabilize the business in the market. A good franchisor is one who cherishes the franchisee’s financial success.

In addition, as the vast majority of organizations – or almost all of them – carry the responsibility of social responsibility with their public. Whether it is through charitable actions, actions in the internal or external community, or any other type of activity, it is very important.

Do you have the money to open a franchise?

Do you have the money to open a franchise?

As we have brought, for you to do the simple registration of the brand you pay a fee of about $ 400.00, and this is just one of the costs that you will have to open your franchise.

The other possible costs that you certainly did not consider are:

  • Training manuals;
  • Lectures and / or workshops that allow the presentation of the company;
  • The mode of customer service and behavior for the franchisee.
  • One must also have resources to leverage the marketing of the new establishment that will be open.

After these initial and prepared steps the contracts that will determine the relationship between franchisor and franchisee the next step is to choose who will be part of the team.

Perhaps this requirement or prerequisite that the franchisee must have (knowledge to make the franchise thrive whatever it may be) make this step the most difficult in the process of turning your franchising business into a franchise once you need to keep the good image of your brand someone who is worried in addition to the profits, but with performing a good job.