Intellectual property: get it right
Franchisors and franchisees also have to deal with what is so nicely called intangible products of the mind. In plain Dutch this includes brands, logos, trade names, color combinations and slogans. It would go too far at this point to provide a full explanation of all these matters about the way in which such matters should be registered and protected. However, it is very important that all parties involved in a franchise organization realize that they are working with such intellectual property rights, ranging from the name of the franchise organization to the house style of the stationery, shop fronts and color schemes of counters. It will often be the case that it is the franchisor who has designed things and has also protected or must protect them under trademark law. In general, it is part of good franchisorship to ensure that this is actually provided with adequate trademark protection, so that the individuality, originality and distinctiveness of the franchise organization is safeguarded in this way, in particular also for the benefit of the affiliated franchisees, who pay a fee to the franchisor, partly for this reason. In addition, it is equally important that the franchisor adequately safeguards his own rights in his relationship with the franchisees. In general, franchisees obtain a license to use the brands and the like of the franchisor through the franchise agreement. The rights and obligations in that context must be comprehensively and adequately laid down in the franchise agreement, with attention being paid to the situation at the end of the franchise agreement, by means of dissolution, cancellation or, for example, bankruptcy. In particular, in the latter circumstance, if nothing is provided for in the franchise agreement, the situation may arise in which the licenses issued to the franchisees remain with them, so that essentially nothing remains of the franchise organization for a trustee, either.
The above is by its nature a very limited representation of what is relevant with regard to intellectual property. The purport of this contribution is therefore in particular the message that franchise parties are dealing with intellectual property rights and that this must be adequately arranged, including in the franchise agreement.
Ludwig & Van Dam franchise attorneys, franchise legal advice
Other messages
Article The National Franchise Guide – “Corona discount of 50% on the rent” – mr. AW Dolphijn – dated September 15, 2020
Disappointing turnover due to the corona crisis may mean that the rent is halved, even if the rent is partly turnover-related.
Article Franchise+ – “Franchisor uses “derivative formula” (without his knowledge)” – mr. AW Dolphijn – dated September 9, 2020
Many franchisors will not be aware of the fact that they use a "derived formula" as referred to in the Franchise Act.
Article Franchise+ – “Obligations and rights of the starting franchisee” – mr. AW Dolphijn – dd
What should you pay attention to as a starting franchisee, what are your obligations and what are your rights when concluding the franchise agreement?
Article Mr. C. Damen – Three conditions for the right to customer compensation for the agent upon termination of the agency agreement – dated August 26, 2020
In the agency relationship between an agent and a client (the principal), the parties record their cooperation agreements in an agency agreement. When the principal enters into the agency agreement
Article Mr. C. Damen – “When does the obligation to provide proof apply for the submission of the franchise agreement?” dated August 17, 2020
Does the obligation to produce information apply to showing a (franchise) agreement in proceedings if the parties to the proceedings do not have a legal relationship to the (franchise) agreement?
Article Mr. AW Dolphijn – “How do you value a franchise company with a discharge loan?” – dated August 14, 2020
A discharge loan is a proven means of franchisors to find long-term franchisees.