Franchise New Zealand | Spring 2025 | Year 34 Issue 03
38
When joining a franchise system, one of the most valuable assets a franchisee
receives is access to a recognised and trusted brand. Behind that brand sits a
trade mark (or multiple trade marks) often carefully developed, registered and
actively protected by the franchisor.
A trade mark is a sign that distinguishes one trader’s goods and/or services
from those of others. It can include words, logos, colours, sounds, or any
combination of these. Registration of a trade mark provides the owner with the
exclusive right to use it in connection with the goods and/or services for which
it is registered. Trade marks typically cover various aspects of the franchisor’s
brand, including the name, logo and/or tagline of the franchised business.
While much of the focus in franchising is understandably on the operational
side of the business, the strategic and legal value of the brand the franchisees
get access to cannot be overstated.
What are the benefits to franchisees?
Wynn Williams’ franchise and trade mark specialists Partner Katrina Hammon
and Associate Roxana Cvasniuc have identified some of key benefits
franchisees receive from using a franchisor’s brand.
Brand recognition: Franchisees benefit from the established goodwill
the franchisor has cultivated in their brand. Operating under a recognised
and reputable brand helps accelerate customer engagement, reduces the
upfront investment usually required to build trust and credibility, and gives
franchisees a running start in the market – allowing them to focus on growth
and operations rather than building a brand from the ground up.
Exclusive use: Under the franchise agreement, franchisees are generally
granted a licence to use the franchisor’s branding within a designated
territory. This helps prevent overlap with other franchisees and strengthens
presence in the designated territory.
Legal clarity and protection: Franchisors who actively manage their
brand through registration and enforcement efforts safeguard franchisees
against imitators or competitors with similar branding. This protection allows
franchisees to operate confidently, knowing their brand rights are secured.
Marketing and advertising power: A recognised brand significantly
simplifies marketing and advertising efforts. Franchisees benefit from
international, national and regional campaigns coordinated by the franchisor,
which increase overall brand exposure. This collective approach helps lower
marketing costs and reduces the workload for individual franchisees.
Mitigated risks: Launching a business with a new, unregistered brand name
involves considerable risk. Without proper clearance, there is always the
possibility that the name is already owned or in use by another party, which
can result in expensive and time-consuming legal conflicts. Franchisees
benefit from reduced risk by trading under a brand that has been thoroughly
vetted and legally registered.
The commercial, operational and reputational benefits derived from using
a franchisor’s brand
give franchisees a
substantial head start
and a significant strategic
advantage. For those
seeking to minimise risk
and maximise growth
potential, leveraging the
strength of a franchisor’s
brand remains one of the
most compelling reasons
to choose a franchise.
Wynn Williams on the advantages of
franchisees using a franchisor’s brand
BRAND
BENEFITS
Buying a Franchise
Wynn Williams
www.wynnwilliams.co.nz
Contact
Katrina Hammon
09 300 2647
021 221 8847
katrina.hammon@
wynnwilliams.co.nz
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