quesCan there be trademark issue in franchisee business

We are running a Fast Food restaurant under a franchisee model. Now we want to carry out business independently. We want the name of the business similiar to the one existing of the franchisee. We operate the firm as propreitoriship, soon we will be registering as private limited. Our concern is will there be any trademark issue with the franchisee name. If yes, what is the best alternative. At present Franchisee Name: "Cheeliza" Company Business Name: Ruchi Foods Plaza Pvt. Ltd. Our planned outlet Name: "Cheezilla" Company Business Name: Kirti Foods (Kirti Group Pvt. Ltd.)

  • ansTrademark issues in case of franchise agreements are common. It would be possible to comment on the matter after legal vetting of the franchise agreement. Although as per industry practice it is likely that the IP would not be exploitable by the franchisee after termination. Such usage may invite trademark infringement litigation.

    Advocate Divyang Chandan

      Princess Street, Mumbai

  • ansSir,

    The actual owner of the trademark “CHEELIZA” i.e. Ruchi Foods Plaza Pvt. Ltd. will not allow you to use such a similar trademark “CHEEZILLA” because admittedly, the adoption of your trademark “CHEEZILLA” is copied from the trademark “CHEELIZA” which actually belongs to Ruchi Foods Plaza Pvt. Ltd. Therefore the adoption of your trademark "CHEEZILLA" is itself dishonest. If application of the trademark "CHEEZILLA" is filed, you may face the objections by the Trademark Registry and even if the trademark is accepted and advertised, Ruchi Foods Plaza Pvt. Ltd. may file the opposition on your trademark.

    Advocate Amit R Kukreja

      Fort, Mumbai

  • ansRegistering the business process is more important that getting the name to do the same since that is what matters and is more important. Or simply the business function procedure etc however do not be concerned about business name since it really does not matter...

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