Intilectual concept

fredjclaus

I recently found a franchise idea online that seems to ask for a franchise fee, as well as a residual commission from all your sales. The company doesn't give you much by way of equipment, training or support other than you name and website listed on their website in the area where you provide services.

This concept is such a simple one that I could do it myself without purchasing the franchise name. The franchise is in the ground floor stages so it's also not like it's a very popular company, and there are no franchisees in my entire state.

If I took this business idea, gave it a new name, changed the marketing aspect and pricing, would it be violating the intilectual property of this franshiser, or is this safe to do?

Photog4Christ

I guess that would really depend. I'm not an expert on IP, but there is more than one pizza delivery joint, plumber, hair salon, etc... in my town.

Glort

Photog4Christ wrote: »

I guess that would really depend. I'm not an expert on IP, but there is more than one pizza delivery joint, plumber, hair salon, etc... in my town.

Exactly!

You can patent a product, you can patent a methodology or procedure but you cannot patent or register a copyright or intellectual property in an idea.

If the idea is so simple, it's more than likley that the franchise didn't either think of it first or actually practice it. To take any action against you they would have to prove they did and that would basically be an impossibility and even if they did, there is still no legal claim to an idea.

I'm sure you will get the usual band of pedantic, scared of their own shadow and never take an initiative in case you are sued types advising all sorts of overly cautious clap trap that would prevent anyone going forward in any endeavor of life, but the reality is your safe as houses on this one Fred.

The trouble with a terrible lot of franchises is they give you the equipment but they don't give you clients or the knowledge to build the business. Many franchises are merely buying yourself a job. Some are different IE, Mc Donalds, but as for a window cleaning service or a lawn mowing business, they are really more of a crutch and a way for the franchise owner to make money from other peoples labor without the responsibility of employees.

If you think the idea has merit Fred, by all means go with it now and get in on the ground floor yourself.

RogersDA

You can get into deep water by infringing any of their patents (if they exist), or by infringing their copyrights (which could potentially include using the same/similar literature, logos, names, etc. including those can be confused with theirs).

Merely copying a "business model", without more, is generally not a problem. For example, if the company's business model is based on trade secrets (think of the formula for Coke) then that does not prohibit you from making the same beverage and selling it under a different name (ClausJuice) so long as you did not obtain the formula for Coke using illegal means.

However, a quick consult with an intellectual property attorney is always a safe bet.

Foques

I've seen multiple companies do that.. so I don't really see how they can have any ground for going after you. It is not like they invented that

chrisjohnson

Dear Fred,
It seems like you saw an idea and think you could do it yourself? Correct?

The only point to go with a franchiser is when they reduce your costs, increase your capital, or increase your market access in a quantifiable way. As long as you have not signed an NDA, or entered into negotiations, you are still a free agent. You have to think whether you are stronger together or apart.

Normally you cannot patent a business model - otherwise Dell would have done so years ago. You can, however, patent scientific methods, products even, and processes. Without knowing the detail - which you don't want to share for obvious reasons - it is impossible to give any opinion.

I would not worry about copying business ideas which are put in the public domain. If you want a better opinion you had better send me a PM with the details.

PS Glort as usual hits a few nails on the head. In the current recession a lot of people are being laid-off with cash in hand. A lot of franchise scammers are active with a proposal of "give us your redundancy money and we will set you up in a self-employed business". Buyer beware!

waywardfool

From years of observation, I know about the McDonalds franchise. I have been in their stores, and seen their operations (from the customer side of the counter).

Nothing prevents me from opening my own fast-food restaurant, selling burgers, fries, and all the other stuff. Only if I used/copied specific items...such as the menu items with no change, called it "McRonalds", or things along those lines.

Go for it.