My company currently own 2 retail locations and is planning on selling 1 that is not making profits. I would still like to continue to use the same brand name but is afraid that once the store is sold the new owner might go a different way of doing business and affect my brand. Is there a good way to protect my brand?
Administrative Law Lawyer
The issues raised by this question are way beyond the degree of information that can be offered here on this site to assist you. You need an attorney to successfully navigate and complete the intended transaction. Failure to consult with a skilled and qualified attorney at the beginning of this effort, and throughout the course through completion to close of escrow and beyond, would be a textbook definition of pound-foolish.
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9 lawyers agree
I agree with Ms. McCall.
If your store's name is trademarked, you could sell the assets and transfer the lease of the second store, license the name subject to quality control supervision, and that is only one option.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
Debt Settlement Attorney
Ms. McCall and Mr. Doland are two of the best and I agree, you should consult with a lawyer who handles this type of matter to protect your interests. Good Luck.
*Scott G. Nathan has been licensed to practice law in California since 1983. The information presented here is general in nature and is not intended, nor should it be construed as legal advice for any particular case or matter. This posting does not create any attorney-client relationship with Scott G. Nathan or my law firm. For specific advice about your particular situation, you should consult with an attorney immediately.
I agree with my colleagues and will add the following (another reason why you need a lawyer's help):
Depending on the ways you control the new owner's operation, you could unintentionally create a franchisor-franchisee relationship, which likely would be a major problem from your perspective. Please see the post at the link below.
This information does not constitute legal advice and does not establish an attorney-client relationship.
3 lawyers agree