In Good Company - Managing Intellectual Property Issues in Franchising - Intellectual Property for Business Series Number 5

Oct 22, 2026

Uploaded by Damian

A business-oriented guide from the World Intellectual Property Organization on managing intellectual property issues in franchising. The publication explains franchising as a multi-party process centered on licensing intellectual property alongside a proven business model. It covers practical preparation steps, franchise agreement formation and key provisions, applicable laws, market and disclosure considerations, franchise relationship management, and end-of-agreement disputes and post-termination matters. It also includes supporting references and a glossary.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages71

Reading Time2 h 59 min

AccessFree to download

Preface

Acknowledgements

Introduction

Different Ways of Expanding a Successful Business

Franchising

Different Types of Franchising Arrangements

International Franchising

Advantages and Disadvantages of Franchising

Franchise Associations

Preparing to franchise

Feasibility Study and Pilot Testing

Disclosure

How to Market Your Franchise

What Types of People Become Franchisees?

Due Diligence by the Franchisee

Entering into a Franchise Agreement

Laws that Apply to Franchising

Accidental Franchise

Franchise Agreement – Guiding Principles

Main Provisions of a Franchise Agreement

Managing a Franchise Relationship

The Operations Manual

Improvements

Training

Quality Control

Co-branding

Company, Business and Domain Names

End of a Franchise Agreement

Issues that Give Rise to Franchising Disputes

Contract Duration

Transfer Conditions

Dispute Resolution

Post-termination Issues

Class Actions

Annex: Glossary of terms

In Good Company Managing Intellectual Property Issues in Franchising Intellectual Property for Business Series Number 5 Publications in the “Intellectual Property for Business” series: 1. Making a Mark: An Introduction to Trademarks and Brands for Small and Medium-sized Enterprises. WIPO publication No. 900.1 2. Looking Good: An Introduction to Industrial Designs for Small and Medium-sized Enterprises. WIPO publication No. 498.1 3. Inventing the Future: An Introduction to Patents for Small and Mediumsized Enterprises. WIPO publication No. 917.1 4. Creative Expression: An Introduction to Copyright and Related Rights for Small and Medium-sized Enterprises. WIPO publication No. 918 5. In Good Company: Managing Intellectual Property Issues in Franchising. WIPO publication No. 1035 All publications are available to download free of [charge at:](charge at: www.wipo.int/publications)[ www.wipo.int/publications](charge at: www.wipo.int/publications) In Good Company Managing Intellectual Property Issues in Franchising Intellectual Property for Business Series Number 5 The user is allowed to reproduce, distribute, adapt, translate and publicly perform this publication, including for commercial purposes, without explicit permission, provided that the content is accompanied by an acknowledgement that WIPOis the source and that it is clearly indicated if changes were made to the original content. Adaptation/translation/derivatives should not carry any official emblem or logo, unless they have been approved and validated by WIPO. Please contact us via the WIPO website to obtain permission. For any derivative work, please include the following disclaimer: “The Secretariat of WIPO assumes no liability or responsibility with regard to the transformation or translation of the original content.” When content published by WIPO, such as images, graphics, trademarks or logos, is attributed to a third party, the user of such content is solely responsible for clearing the rights with the right holder(s) . To view a copy of this license, please visit [https://creativecommons.org/licenses/by/3.0/igo/](https://creativecommons.org/licenses/by/3.0/igo/) The designations employed and the presentation of material throughout this publication do not imply the expression of any opinion whatsoever on the part of WIPO concerning the legal status of any country, territory or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. This publication is not intended to reflect the views of the Member States or the WIPO Secretariat. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by WIPO in preference to others of a similar nature that are not mentioned. © WIPO, 2019 First published 2006 World Intellectual Property Organization 34, chemin des Colombettes P.O. Box 18 CH-1211 Geneva 20 Switzerland ISBN: 978-92-805-2265-5 Attribution 3.0 IGO (CC BY 3.0 IGO) Cover: Juan Salvador Fernández Tamayo, parema, Mirjana Ristic / Getty Images Printed in Switzerland Table of Contents Preface 4 Acknowledgements 5 Introduction 7 1. Different Ways of Expanding a Successful Business 8 Franchising 9 2. Different Types of Franchising Arrangements 13 3. International Franchising 14 4. Advantages and Disadvantages of Franchising 15 5. Franchise Associations 17 Preparing to franchise 18 6. Feasibility Study and Pilot Testing 19 7. Disclosure 20 8. How to Market Your Franchise 24 9. What Types of People Become Franchisees? 24 10. Due Diligence by the Franchisee 25 Entering into a Franchise Agreement 28 11. Laws that Apply to Franchising 29 12. Accidental Franchise 31 13. Franchise Agreement – Guiding Principles 32 14. Main Provisions ofa Franchise Agreement 32 Managing a Franchise Relationship 42 15. The Operations Manual 43 16. Improvements 44 17. Training 44 18. Quality

FAQs

Why is intellectual property important in franchising?

The guide explains that franchising relies on licensing intellectual property together with a proven business model. Intellectual property supports the brand and enables expansion with defined rights and obligations.

What preparation steps are recommended before starting a franchise?

The publication outlines preparing to franchise through activities such as feasibility study and pilot testing, disclosure, marketing the franchise, screening prospective franchisees, and conducting due diligence.

Which topics are addressed when managing a franchise relationship and ending the agreement?

It covers operations manual use, improvements, training, quality control, and co-branding, then addresses issues that cause franchising disputes, contract duration, transfer conditions, dispute resolution, post-termination issues, and class actions.

Oct 22, 2026

Uploaded by Damian