Franchising is one of the most popular ways of doing business, offering several key benefits for franchise owners. Franchising allows you to expand geographically, whilst sharing risk with a franchisee. In this guide, we explain the role of intellectual property in franchising and how you can protect your rights during your relationship with a franchisee.
If you are reading this because you want to understand how intellectual property fits into a franchise arrangement, our intellectual property solicitors can help. We advise franchisors on how to structure, protect and enforce intellectual property rights within franchise agreements, making sure your brand, know-how and creative assets are properly secured.
Contents:
- How is intellectual property used in franchising?
- What are trade marks and why does trade mark registration matter for franchisors?
- How to register a trade mark in the UK?
- How can franchisors protect their brand internationally?
- Trade marks inside the franchise agreement
- What are trade secrets and confidential know how and why are they important to franchisors?
- How is copyright used by franchisors?
- What is the role of design rights in franchise agreements?
- How do franchise owners protect and enforce their intellectual property rights?
- How can franchisors handle intellectual property disputes?
How is intellectual property used in franchising?
Before a customer walks through your door, they encounter your franchise’s brand through dozens of different touchpoints. Every name above the shopfront, every logo on a menu, the design that sets your packaging apart, these are all forms of intellectual property at work.
Intellectual property in franchising operates quietly but decisively in the background. Trade marks deliver instant recognition: you want customers to see the franchise's signage, uniform or app icon and know what to expect.
In the UK, a registered trade mark gives you exclusive rights over those important branding elements for your chosen goods and services, and are renewable every ten years. And it is not just about logos; trade marks can cover everything from company names and slogans down to distinctive packaging, non-functional shapes and even sounds.
Beyond the visible brand itself, copyright quietly protects original work in training manuals, staff photographs, explainer videos, or the code and creative expression of software that you hand over to a franchisee, offering automatic protection from the moment it is created. Copyright lets you control copying, distribution and licensing, so that clear terms governing its use and re-use are especially important to allow franchisees to know exactly what is permitted.
Franchising is also about differentiation. If your product packaging or design carries a distinctive look, design rights may protect that visual identity. Registered designs give you stronger, easier to enforce rights, meaning you can tackle imitations both within and outside your franchise network more easily.
Do not overlook the digital shopfront: your domain names and social media handles are how the outside world finds you. Protecting these assets is just as important as any bricks and mortar presence.
All these forms of intellectual property rights: trade marks, copyright and design rights, work together to create the unified experience customers and franchisees expect. Each has its own cycle of registration, enforcement and renewal, but together, they ensure your system remains distinctive, consistent and secure as you grow.
What are trade marks and why does trade mark registration matter for franchisors?
Trade marks are powerful intellectual property rights. They give their owner a monopoly over the marks in respect of the relevant goods or services. Provided they are renewed, trade mark registrations can last indefinitely. If a third party uses your registered trade mark without permission, you may have a claim against them for trade mark infringement.
A franchisor’s brand is central to a franchise. For example, a McDonald’s without the branding is arguably no different from any other burger restaurant. The ability to trade under a well known brand is often a key reason behind a business deciding to pay franchise fees and operate as a franchise as opposed to under its own business name for free.
To protect their investment, a franchisee will want to be certain that the franchisor not only legally owns its branding, but can also proactively protect it against copycats.
How to register a trade mark in the UK?
Given the complexities of trade mark law and procedure and the importance of trade marks to brand protection, most business owners ask intellectual property solicitors to register their trade marks.
Your intellectual property solicitor will begin by assessing the registrability of your marks and conducting searches to ensure that no earlier rights exist that might defeat your trade mark applications. If they identify any issues, intellectual property solicitors will work with you to make the changes necessary to give your application the best chance of success.
Your intellectual property solicitor will then prepare your trade mark application, including the detailed ‘specification’ that must accompany it. A specification sets out the proposed goods or services that you intend to use in connection with your mark. Your solicitor will then submit the application to the UK Intellectual Property Office (IPO), who will check that it meets the registration criteria. If no issues are identified, the IPO will publish your application in the Trade Marks Journal.
Any third parties who objects to your trade mark registration because it is too similar to their pre-existing mark, can oppose your application during the application process. If no opposition is raised, or any opposition fails, your mark will proceed to registration.
On average, straightforward applications can achieve registration within 3-4 months. If the Registry has concerns about the trade mark’s registration eligibility or a third party opposes it, the registration process will be delayed.
How can franchisors protect their brand internationally?
Trade marks are territorial rights. As a general rule, if you register a trade mark in the UK, the registration is only effective in that jurisdiction. If you intend to franchise your brand globally, you must plan ahead and put the appropriate global protections in place. This involves developing a portfolio of international trade mark registrations to license to franchisees in the relevant jurisdictions.
This may involve filing individual national trade mark applications, or using international systems such as the Madrid Protocol to streamline the process and potentially reduce the number of separate trade mark applications required.
Our intellectual property solicitors will advise on the procedures involved and whether any applicable international systems might reduce the number of registrations required.
Trade marks inside the franchise agreement
Your agreement should deal with licensing of both registered and unregistered marks, spell out the territory and scope and build in real world quality control mechanisms and approvals before local marketing goes live. It should also cover audit rights and a takedown mechanism that can be triggered quickly.
Recording the franchise agreement at the UKIPO is not compulsory, but it is often a good idea because it provides formal evidence of the licensing arrangement. This can help avoid future disputes over who is entitled to use the trade mark and clarify the rights of both the owner and the licensee. A recorded licence can also be useful in cases where enforcement action is needed, as it demonstrates the legitimacy of the licensee's use of the trade mark.
What are trade secrets and confidential know how and why are they important to franchisors?
Think of your signature spice blend, a unique supplier network, custom onboarding scripts, or the data behind your pricing recommendations; these are classic examples of franchise know-how that power your advantage. If the secret gets out or an important process leaks to a competitor, you lose the edge you’ve carefully built. Under the UK Trade Secrets Regulations, information qualifies as a trade secret if it is secret, has commercial value because it is secret, and you take reasonable steps to keep it that way. It rewards those who combine good paperwork with good operational hygiene.
If you want to protect your trade secrets and know-how, you should put NDAs in place at the pre contract stage; restrict access to manuals and systems on a need-to-know basis; watermark and version control documents; train people and onboard and offboard them properly.
How is copyright used by franchisors?
Because copyright arises automatically, the real risk is ambiguity. You need to spell out that the franchisor (or a nominated group company) owns the manuals, photographs, videos, marketing creative and any software code and that the franchisee receives a limited licence to use them for franchise purposes only. This should be made explicit in your franchise agreement to avoid disputes over ownership, use, or modifications, both during and after the franchise relationship.
Make sure you address moral rights and the ability to make updates in your supplier and contractor agreements as well. By ensuring that suppliers and contractors assign copyright and waive any moral rights, you retain control and can refresh content without delays later on. This approach removes uncertainty and gives you a clear framework for managing your intellectual property across the franchise network.
What is the role of design rights in franchise agreements?
If the shape of your product, packaging, or interior concept is a key part of your franchise’s appeal, consider registering your designs, this makes enforcement, takedowns, and civil claims much more straightforward than relying on unregistered rights alone. Registered design protection gives you a clearer, stronger tool for dealing with copycats or brand misuse, and is a step worth taking early on.
How do franchise owners protect and enforce their intellectual property rights?
Policies don’t enforce themselves. Franchises stay on brand when the guidelines are visual, approvals are quick and predictable, suppliers are authorised, audits actually happen and outcomes are logged. When marketing teams know what gets automatic signoff and what needs review, they move faster and stay compliant. KPIs help too: treat brand compliance like any other metric you track and improve.
Be proactive. Trade mark and domain monitoring can help you see problems early and can identify the misuse of your intellectual property rights. For domains, the .uk Dispute Resolution Service (DRS) and the UDRP for most other domains remain the main fast track dispute options, and they dovetail neatly with platform takedowns on online marketplaces. A consistent central approach prevents mixed messages from well-meaning franchisees who are tempted to “have a go” themselves.
How can franchisors handle intellectual property disputes?
Franchisors should take a structured and proactive approach to handling intellectual property disputes. The first step is to rely on clear contractual provisions, making sure franchise agreements set out detailed requirements around brand use, approvals, and de-branding, as well as explicit hand-back and non-compete obligations. When a dispute arises, document the issue thoroughly, refer to the relevant contract clauses, and seek a quick resolution through dialogue or internal escalation, ideally before the issue escalates further. Having clear evidence that brand guidelines have been communicated and enforced makes your position stronger and helps minimise ambiguity.
If informal resolution fails, franchisors can take advantage of intellectual property enforcement mechanisms. For example, filing complaints with domain registrars, requesting takedowns from social platforms, or sending cease and desist letters are often effective in resolving infringements efficiently. In recurring or serious cases, franchisors may need to pursue formal legal action, such as seeking injunctive relief or damages through the courts. Consistency is needed, a centralised process prevents mixed messages, ensures prompt action, and discourages franchisees or third parties from testing the boundaries of your brand and intellectual property rights.
Summary
Franchising offers a valuable opportunity for the right type of business. It generates income, increases brand awareness and allows you to grow your business whilst sharing risk. You will need to provide your franchisees with commercially sensitive information and permit them access to your intellectual property, so the arrangement must be strictly controlled by a comprehensive franchise agreement. The agreement must ensure your intellectual property and trade secrets are fully protected, both during the course of the agreement and when it ends, so expert legal advice will be needed.
Our intellectual property solicitors will also ensure your intellectual property portfolios are properly maintained and can be effectively licensed and enforced. If a franchisee misuses your intellectual property, our intellectual property solicitors will take prompt, decisive action to minimise the damage and advise on your options both under the franchise agreement and any other applicable law.
