Franchising companies have her responsibility to insure that their trademarks are not infringed upon. Just because a franchise company has properly registered the service Marks and trademarks with the proper state and federal agencies does not mean that some one will not try to use such Marks without permission.

There is no way that a franchisor can be in all places at once to insure no one has stolen their name. However, a franchisor also has a supreme advantage in that they have franchisees all over the country who can look out for such things. It is for this reason that I decided to address this issue in our franchise agreements for my company;

3.11.3 Name Infringement

Franchisee will promptly notify Franchisor of any unauthorized use of any of the Marks or any colorable variation thereof, by third parties. Franchisee will promptly notify Franchisor of any claim, demand or suit against Franchisee based upon or arising in connection with Franchisee's use of any of the Marks. Franchisee acknowledges that Franchisee has no authority to defend or prosecute any action relating to the Marks, and that Franchisor, at its sole discretion, may elect to defend or prosecute any action relating to the Marks. In the event that Franchisor undertakes the defense or prosecution of any litigation relating to the Marks, Franchisee will execute any and all documents and do all acts and things which may be necessary or of aid, at the determination of Franchisor's legal counsel and at the expense of Franchisor, to carry out the litigation.

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It is well advised for all franchisors to be cognizant of the fact that others will try to take shortcuts and steal the use of their registered federal trademarks. In fact often a franchisor will have to be legally aggressive against perpetrators. Franchising companies should contact a competent trademark attorney and a franchising attorney to come up with a strategy to protect their brand-name. Consider this in 2006.