New Year’s Resolution for Franchisors: Strengthen Your Franchise Agreement (Part B)

Non-Compete Agreements

One of the most important aspects of your franchise agreement should be the non-compete agreement. This will prevent your franchisees from competing with your franchise. However, each state has different laws regarding non-compete agreements, so you may need to get the help of an experienced New York franchise lawyer. Your lawyer can advise you on the limitations that you may place on franchisees pursuant to the business and franchise laws in each applicable state.

Trademarks and Trade Secrets

When writing your franchise agreement, it is important to protect your intellectual property. Therefore, your franchise agreement should include protections for your trademarks and trade secrets. When including these, you should require franchisees to obtain non-disclosure agreements from all of their employees, as well as business agents and managers.

In order to protect your trademarks within the franchise agreement, you should:

• strictly define the use of trademarks within the franchise agreement;
• establish specifications for your trademarks, such as colors, sizes, shapes and uses in advertising formats; and
• require franchisees to help monitor the United States Patent and Trademark Office (USPTO) system for confusingly similar marks.

Requiring the Right Kind of Insurance

Besides requiring franchisees to obtain liability insurance, your franchise agreement may also require employment practices insurance, which will cover claims of sexual harassment and age discrimination. Your franchise agreement may also require franchisees to buy business interruption insurance, which will help cover damages in case of certain interruptions to business operations.

How a New York Franchise Lawyer Can Help

When reassessing the terms of your franchise agreement for the year 2011, your New York franchise lawyer may advise you on New York franchise law. Without a firm grasp of the law, you may make legal mistakes within the terms of your franchise agreement. If your franchise agreement leads to a dispute with one of your franchisees, your New York franchise lawyer can:

• investigate the case;
• recommend a course of action; and
• help protect your business interests.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Practice Areas