Intellectual property is absolutely crucial to business. Defined by the Oxford Dictionary as the intangible property that is the result of creativity, such as patents and copyrights, intellectual property ensures that innovators – the people behind brands – reap rewards for their ideas and hard work.

And whilst it’s important for any business, it’s that much more significant for franchise brands.

Why? Because franchise brands are successful because of the brand. And its reputation.

BRAND REPUTATION

Put simply, intellectual property comes into play across all consumer products. It’s like Biro is to pen, BandAid to adhesive bandages, Hoover to vacuum cleaners and Vaseline to petroleum jelly… they’re the brands that have become household names because consumers know and trust their offering.

Intellectual property is central to franchised brands because it offers consumers familiarity, and helps people to make informed decisions about their purchases. People know that when they head into Cold Rock, they’re going to get a delicious ice cream, enjoy Mix Ins and get to watch all of the action. The same person visiting an independent ice cream business has no idea what will be on offer… and for many people, this very idea is enough to scare them off and make them choose a familiar brand.

One of the most successful franchises in the world, McDonalds, has succeeded in part because it has protected its ideas from day one. There is nothing cutting–edge or extraordinary about their offering, but it is well known.

Consumers are creatures of habit and a lot of the time familiarity is the key element we seek. McDonalds becomes a safe bet, because you and I know that anyone can travel halfway across the world and still get a cheeseburger and fries.

HOW TO PROTECT THE BRAND

Firstly, franchisors need to ensure that the trademark is registered. They need to be aware of what is happening around them: read what is happening in the news, not just on the doorstep, but also internationally; read everything and anything about competitors.

Franchisors need to know their rights, understand the ways that they can be breached, learn how best to deal with them and be unafraid to enforce them.

At the end of the day, one of the major reasons people buy into franchise brands is because they are purchasing a reputation and a brand’s intellectual property. 

Protecting the brands: Stan Gordon of Franchised Food Company

This is a product or brand or offering that has a history with consumers, and an established audience. You just can’t get that when you start up your own brand.

And whilst you may have a fantastic idea, you take more of a risk when you create something from scratch. With a franchised brand, all the hard work is done for you; the systems are in place and they already operate well. All you have to do is follow protocol.

FRANCHISEE RESPONSIBILITIES

Intellectual property also comes into play with franchisees and their responsibility in maintaining the status of a brand. They must understand how to use it properly, to ensure continuity and that it remains authentic.

I like to think of each franchisee as a mini-brand ambassador. If franchisees are not demonstrating the brand values, the public image can be distorted, and has the potential to be damaged.

And whilst intellectual property laws are important for brand and consumer protection, having these laws in place also encourages innovation and helps drive competition and growth.

If we didn’t have such jurisdiction, businesses would rarely think outside the box and come up with fresh ideas and new ideas. Imagine every restaurant being a copy of McDonalds and all gymnasiums following the Fitness First model… life would be pretty repetitive and boring.

To ensure brands maintain their reputation and offering, intellectual property must be regulated and respected to safeguard a brand from competitors and circumstances that may be damaging.

Stan Gordon is the founder and CEO of Franchised Food Company; the umbrella organization incorporating the brands Cold Rock Ice Creamery, Pretzel World, Mr Whippy and Nutshack: http://www.ffco.com.au/buy-a-franchise.html