Legal and branding considerations when naming a franchise

On Behalf of | Jul 27, 2023 | Business Law |

A franchise business’s name represents the brand to customers and can significantly impact its success, so it is important to make the right decision. While a good name choice doesn’t guarantee success, a poorly chosen one can be detrimental. In some cases, making the wrong choice can even lead to legal trouble! Here are some points to consider when selecting a name for your Texas franchise business: 

  • Avoid Over-Descriptive Names: Overly descriptive names can make it challenging to obtain trademark protection. Choosing generic terms like “hamburgers” may not be eligible for trademarking, potentially leading to legal complications in the future. 
  • Pick a Name with Purpose: Many successful businesses incorporate words or parts of words that convey the desired attributes of the brand. For example, FedEx’s name points to speed, while PayPal’s says what the business does and conveys that it is easy and friendly with the word “pal.”  
  • Simplify Spelling and Pronunciation: Opt for names that are easy to spell, pronounce, and remember. Shorter names work well on signage, allowing for better visibility and recognition. 
  • Ensure Trademark Availability: Before investing time and effort in promoting a name, ensure it can be trademarked. Conduct a search in the Trademark Electronic Search System (TESS) to check for existing trademarks that could lead to conflicts. 

Selecting the right name for a franchise business requires thoughtful consideration. Business owners must consider both communicating with their customers and avoiding legal trouble when selecting a name. To navigate the complexities and ensure a strong foundation for your brand, it is essential to seek legal advice from a Texas attorney with familiarity with business law.  

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