ECN Forum Forums General Topics of the Trade Business Related Discussion Mr Electric Franchise

After doing some more research I found some other legal cases that are worth considering.

Trademark Infringement

https://docs.justia.com/cases/federal/district-courts/california/caedce/2:2007cv00618/161306/13

This shows a trademark infringement and most likely involves a franchisee who is still using the branding, phone numbers and the like after ceasing to formally use the brand to trade under. In these instances the franchisor will demand that phone numbers and other communications are transferred to them, so they can pass them to a new franchisee. So if you fall out with the franchisor, they are well within their rights to ask you for this information. In short you may have built the business ok, got some customers and then you decide to leave but you must give them the phone numbers back.

Fairly obvious stuff within a contract I guess but we are no legal experts and we need to know what may come our way if things don't work.


Use of Logo & Copy Cat Marketing

This one shows what happens when you misuse the franchise branding.

http://www.gpo.gov/fdsys/pkg/USCOURTS-ksd-2_06-cv-02414/pdf/USCOURTS-ksd-2_06-cv-02414-11.pdf

This franchisee setup a website without permission from the franchisor, they used parts of the Mr Electric logo to form their new company logo (following termination from Mr Electric )and used this in marketing for that new company. The franchisee subsequently continued to turn up in a Mr Electric van to do work and continued to use the telephone numbers from his defunct Mr Electric business to grow the new business. As such the Dwyer Group were within their rights to challenge this.

The point here is simple if you’re the type who thinks they can get away with naughty behaviour of this kind, think again! They clearly have the financial resource to challenge a franchisee legally and have proven they will act.

In summary, they know the law and you as an electrician may not know all the ins and outs. Furthermore, you may not have the financial means to challenge them legally if you have your own grievance against them.