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What sort of protection does a franchisor have to stop possible competitors replicating its system?
A franchisor should insist that anyone considering becoming involved in the franchised business should sign a confidentiality agreement before any information is disclosed. The confidentiality agreement should deal with how any of the franchisor’s information can be used or disclosed and how long the duty of confidentiality will last. The franchisor may also protect its name, trading style, know-how and logo that are unique and distinctive to the franchisor and the business. Trademarks, patents and any know-how are often referred to as intellectual property and together may make up the franchise system. The franchisor will want to protect its intellectual property in the best way it can. To do this, it may be able to register the trademark at the UK Intellectual Property Office if it is distinctive. If the franchise system includes technical know-how, such as a new invention or novel process, then such know-how may be protected by registering a patent, which will last for 20 years.
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