If the franchise fails to renew a contract question?

Question

If the franchise fails to renew a contract with me am I able to change the name of the store but still sell the same type of product. How much variation has to be in the change of the name...do I still have to change the name if the name isn't trademarked.

Answer 1

You can change the name of your business but have to pay the necessary fees and it is only minimal.

Answer 2

These questions are best answered by your specific franchise agreement. Most franchise agreements address these issues specifically. However, generally you are not required to pay any fees once the franchise agreement expires but be very careful about trademark infringement and take everything down with their name/logo on it. Some franchise agreements have stipulations in them that would prevent you from doing any business activity that would compete with the franchise, however more and more states deem these types of clauses illegal and the courts consider them unenforceable. Also, see if the lease or telephone number is at risk of being taken over by your franchiser.
My advise to you is to first, take your franchise agreement to a franchise attorney, perhaps your franchisee association can provide you some information or a referral. Also, be very proactive in getting the change of name started with the new signage, invoices, POS material, etc. and hit the floor running with a very good advertising plan to address the switch in name.

Good Luck!

Answer 3

You would be entitled to retain anything not owned by the franchise. You can sell any combination of products you want in your business. You may want to think about a whole new name change, why piggyback if you already have a good thing going, Ask your customers to help you, make it a contest, Best new logo wins $20 in gas or free foutain sodas for a week.