The foundation of a franchise system ranging from the smallest to the largest franchises is the trademark. A franchise investment is rooted in the right of a franchisee to license the use of the franchise trademark. The activities that a franchisor and its franchisees are involved in have as the basis the promotion, recognition and protection of the franchise trademark.

Franchisors and their franchisees must remain diligent in protecting the franchise trademark. Table/Full Service Restaurant sector has over a 10% higher percentage of parent or affiliate owned trademarks than Quick Services Restaurant sector.

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