U.S. Patent & Trademark Office building in Alexandria, VA. Photo: Diego M. Radzinschi/ALM 'Dawn Donut Rule': A Guide for Expanding Franchises to Enforce Trademark Rights
A relatively recent trend indicates that state regulators in franchise registration states are conducting state trademark searches and advising franchise owners, who are filing applications to offer and sell franchises in those registration states, that a local third party already operates in the state under the same or similar trademark as the franchise.
April 18, 2023 at 11:42 AM
6 minute read
Trademarks
A relatively recent trend indicates that state regulators in franchise registration states are conducting state trademark searches and advising franchise owners, who are filing applications to offer and sell franchises in those registration states, that a local third party already operates in the state under the same or similar trademark as the franchise. Consequently, the state regulator is requesting, and in some cases requiring, additional franchisor disclosures and representations in the Franchise Disclosure Document (FDD) concerning the franchise's trademark rights, and the potential risks to prospective franchisees concerning the right to use the franchise trademark in the state.
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