In practice, yes. UK law doesn’t say a franchisor has to hold a registered trademark, but the name is usually one of the most valuable things a franchisee is paying for. Registering a trademark before you franchise is what lets you prove you own the brand, control how it’s used and stop a former franchisee trading under it. The British Franchise Association’s code of ethics also expects its members to own, or have the legal right to use, the network’s trade name and trademark.
When you franchise, you’re not just selling a business model. You’re giving somebody the right to trade under your name.
Why register a trademark before you franchise?
Because the brand is the thing everyone in the network is buying into. The easiest way I can describe franchising without one is selling tickets to a gig at a venue you haven’t booked. You can sell every ticket, and the line-up can be brilliant, but if the venue turns out to belong to someone else on the night, the gig doesn’t happen, and everybody who bought a ticket wants to know why. Booking the venue, in this picture, is filing a UK trademark application for the name before the first franchise is sold.
The UK has no franchise-specific legislation. As Pinsent Masons’ guide to franchising in the UK puts it, franchise arrangements are governed mainly by contract, competition and intellectual property law. The main industry benchmark is the British Franchise Association’s Code of Ethics for Franchising, which binds its members rather than everyone. Among the franchisor’s commitments, it says the franchisor will own, or have the legal rights to use, the network’s trade name, trademark or other distinguishing identification, and that those rights need to last at least as long as the franchise agreement itself. The same code expects a franchisor to have run the concept successfully in at least one pilot unit for at least a year before franchising.
That pilot year is worth thinking about from a trademark point of view. It’s when the name starts to get noticed, and it’s the ideal time to check it and protect it, before anyone signs up. A trademark consultation and clearance audit at that stage looks at the name, the logo, the classes and the territories together, while changing course is still cheap.
What does a registered trademark give a franchisor?
Four practical things.
Proof that you own the brand
A registration certificate is clear evidence of ownership of a name, logo or tagline for the goods and services listed. A prospective franchisee, or their adviser, may well want to see it before they commit.
Control over how the brand is used
A franchise agreement grants each franchisee a licence to use your trademark. Under section 28 of the Trade Marks Act 1994, a licence isn’t effective unless it’s in writing and signed by or on behalf of the owner, and the owner can use its trademark rights against a licensee who breaks the licence on its duration, the form of the mark, the goods or services covered, the territory, or the quality of what’s provided. For a franchise, where consistent quality is the whole point, that last one matters.
A way to act when a franchisee leaves
If a former franchisee carries on using your name after the agreement ends, they’re using it beyond the licence you gave them, and a registration puts you in a much stronger position to stop them. Without one you’re relying on passing off, which means proving your goodwill, a misrepresentation and damage from scratch, with evidence.
Use that keeps the registration alive
Use of a trademark by a licensee with your consent counts as use by you. Every franchisee trading under your name helps protect the registration against a challenge for non-use.
Who owns the trademark in a franchise?
The franchisor. The registration sits with the franchisor, or with a group company that licenses it to the franchisor, and franchisees get a licence to use it through the franchise agreement. They don’t get ownership.
It’s worth making sure the paperwork matches that. Problems start when the mark is registered in a founder’s personal name, in an old company that no longer trades, or not at all, and a franchisee or a local business gets there first. Our article on who owns the brand name if your business partner walks shows how quickly ownership questions become expensive when the business grows. It’s also worth considering whether to record franchisee licences at the UK IPO, which gives the licence extra protection against third parties.
What do you need to check before you franchise?
Work through these in order before the first franchise is sold:
- Is the main brand registered? Start with the name. If franchisees will trade under a logo, consider protecting that too.
- Are the right goods and services protected? A franchise often adds services, products or merchandise over time. The registration needs to cover what franchisees will actually do, not just what the pilot site did. Our free trademark classes guide helps you see where each activity sits.
- Does your protection cover where you plan to expand? A UK registration covers the UK and the Isle of Man. GOV.UK notes that Jersey and Guernsey have their own processes, and anywhere else needs its own protection. Our guide to UK, EU and international trademarks explains the options.
- Are there earlier trademarks that could cause problems? Check the register for identical and similar names in related areas. Our free trademark search is a sensible first look.
- Is anyone local already using something similar? This one is easy to miss. Under section 11 of the Act, a registration isn’t infringed by use of an earlier right that applies only in a particular locality, for example a business that has traded under a similar name in one town since before you did. For a franchise that plans to open in that town, it’s much better to know early.
What does this mean for a business about to franchise?
It means doing the trademark work before the franchise becomes valuable, not after. Expanding a network only to discover somebody else has earlier rights to the name is the problem you most want to avoid, because by then it isn’t just your business that has to change its name. It’s every franchisee’s signage, uniforms, vans, websites and local marketing too.
My background is in marketing, and from that side of the fence consistency is most of what a franchise sells. The customer walking into the fifth location expects the same thing they got in the first. A registered trademark, with a proper licence behind it, is the legal backbone of that consistency. The IPO’s guidance on licensing intellectual property is a useful read alongside this, including on whether to license or franchise at all.
How can we help before you franchise?
We carry out a full brand clearance audit before we apply for anything. The aim isn’t just to get an application filed. It’s to give the brand the best chance of registration, in the right classes and, if the network will grow abroad, in the right countries through international trademark registration, so you know what you’re licensing before you start selling the right to use it. Clearance audits start from £99, and the first consultation is free for new clients. The UK IPO’s official fee to apply starts from £205 for one class.
If you’re thinking of franchising, book a free call with our team, email enquiries@thetrademarkhelpline.com or ring 0161 833 5400. A franchise is built around the brand. Make sure you actually own it before you start selling the right to use it.
Related questions
- Do I own my trademark, or does my company?
- Will not having a trademark affect selling my business?
- Can someone trademark a name I’m already using and force me to stop?
This article is for information purposes only and does not constitute trademark advice or guidance. Last reviewed 25 September 2026. First shared as a LinkedIn post.
Questions about this
Do I need a registered trademark before I franchise my business?
UK law does not require one, but in practice it comes close. The name is usually one of the most valuable things a franchisee pays for, and registration lets you prove ownership, control how the brand is used and stop a former franchisee trading under it. The British Franchise Association’s code of ethics also expects members to own, or have the legal right to use, the network’s trade name and trademark.
Answered by Alex Pugh, Brand Protection ConsultantWho owns the trademark in a franchise?
The franchisor, or a group company that licenses it to the franchisor. Franchisees receive a licence to use the mark through the franchise agreement, not ownership. Problems start when the mark sits in a founder’s personal name, in an old company that no longer trades, or is not registered at all. Recording franchisee licences at the UK IPO can also give the licence extra protection against third parties.
Answered by Alex Pugh, Brand Protection ConsultantCan I stop a former franchisee from using my brand name?
With a registration, you are in a much stronger position. If a former franchisee keeps using your name after the agreement ends, they are using it beyond the licence you granted, and a registered trademark gives you a clear right to act on. Without one you would be relying on passing off, which means proving goodwill, a misrepresentation and damage from scratch, with evidence.
Answered by Alex Pugh, Brand Protection Consultant
