The Significance of Managing Trademarks by Franchised Enterprises

Legal analysis: Commercial franchising refers to the business activities of an enterprise with registered trademarks, enterprise logos, patents, proprietary technologies and other business resources, which are licensed to other operators in the form of contracts, and the franchisee conducts business under a unified business model according to the contract and pays franchise fees to the franchisor.

Legal basis: Trademark Law of People's Republic of China (PRC).

Article 2 The Trademark Office of the State Council Administration for Industry and Commerce shall be in charge of the national trademark registration and administration. The State Council Administration for Industry and Commerce has set up a Trademark Review and Adjudication Board to handle trademark disputes.

Article 3 Trademarks approved for registration by the Trademark Office are registered trademarks, including commodity trademarks, service trademarks, collective trademarks and certification trademarks; Trademark registrants enjoy the exclusive right to use trademarks and are protected by law. The term "collective trademark" as mentioned in this Law refers to a sign registered in the name of a group, association or other organization for members of the organization to use in business activities, so as to show the membership of users in the organization. The term "certification trademark" as mentioned in this Law refers to a mark controlled by an organization with the ability to supervise goods or services and used by units or individuals outside the organization to prove the origin, raw materials, manufacturing methods, quality or other specific qualities of the goods or services. Special matters concerning the registration and management of collective trademarks and certification trademarks shall be stipulated by the administrative department for industry and commerce of the State Council.