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Can 2 of The Same Franchise Concepts Exist?

 
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TheJoeZone

posts: 13

Jun 11, 2009 3:01 PM ET    Quote  Report Abuse
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 I have a business  concept that  I thought of several years ago.  It is in the personal care service industry. I think the idea is great and would like to  open one and then franchise it. I think it would would be very successfull. And I was right! In doing my "homework" I found out that another  has beat be to the punch. They are doing pretty much the same thing I wanted to do. So tell me, Can I still do what I wanted even though someone else is doing it? McDonalds & Burger King both exist doing the same thing, right? Is there room for competition or  this a case of "you snooze -you lose" ? They say they have 350 franchises, but I never heard of them.There are none in my state , They seem to be located in the Southeast and Southwest areas. I`m more N.Y.C.area. Does one own a concept or can they only own the name? Help is appreciated.

                                                   Joe (TheJoeZone)

TheJoeZone2009-6-11 15:44:4
ElementalUnity

posts: 46

Jun 11, 2009 3:50 PM ET    Quote  Report Abuse
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I think there is lots of room for many franchises.  Like your example, you forgot about Wendy`s and all the others.  And your niche, the personal care industry... well that is a huge HUGE market
TheJoeZone

posts: 13

Jun 11, 2009 6:08 PM ET    Quote  Report Abuse
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Thanks for your input  Elements. I guess what i`m asking is- Can I use the same concept. For example,If I started a car wash where the employees were hot girls in bikinis and I found out someone else was doing it in a franchise setting, can I by rights still do the same? I would think so, but not sure. Is there a law against copy catting?

Although I think both parties have similar ideas, they did come out with it first. Just want to be sure I can still pursue my dream as well. I`m not afraid of competition!

TheJoeZone2009-6-11 18:10:53
TigerTaco

posts: 337

Jun 11, 2009 6:26 PM ET    Quote  Report Abuse
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They no doubt own their name and various other things (you don`t get 350 franchises without having a lot of nuts in your basket of goodies; get to know this site: http://www.ftc.gov/bcp/franchise/netfran.shtm ... and while I think its totally wrong to get a hold of their UFOC (now FDD) know that they have one and are not just some startup).
 
That being said, there are a lot of advantages to being the second one into the pool ... and while you might be better off buying a master license from them and going to town without having to reinvent the wheels (while still doing "your idea"), you will have an easier time of doing some things as the market has already been defined by an existing company.
 
I doubt they own a "service concept" but it is not unheard of for a company to protect all kinds of weird things (e.g., contracts, color pallet, ornamental design, "one-click-checkout", etc.) ... just saying, there are few things where there can be only one of anything and chances are you can startup you own thing (but should you?) "we try harder because we`re number 2".
 
Have fun!
TheJoeZone

posts: 13

Jun 11, 2009 6:50 PM ET    Quote  Report Abuse
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Thanks for your input Chris.

 I will check out the link you sent. After checking out my "competition`s" website I see that they have had an interview on The Big Idea with Donny Deutch. Still, this does not deter me or scare me off. It actually gives me confidence that my idea will work. I just hope that legally i`m still allowed to pursue it. Again, I dont see why I cant, but then again I`m very new at this . And too be honest , although we share the same idea, mine has a slightley different spin to it. For example, Does Hooters own the rights to having hot girls serve wings n beer? Or can someone else do the same thing?

CraigL

posts: 9051

Jun 12, 2009 1:40 AM ET    Quote  Report Abuse
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It sounds to me as if you`re asking for the basic legal definitions of such things as copyrights, patents, and trademarks. What constitutes an infringement on any or all of those.

There`s a critical component involved, one that`s getting harder to define in the modern world. That`s the idea of "natural." So, for example, Intel tried to patent the number 586, back when each CPU they used had numbers.

The courts said they couldn`t patent a number because it`s just that, a number. So they came up with the brand name "Pentium." That, they could do something with.

How could Hooters take ownership of "women in tight shirts?" How could they own the "process of women serving food and beverages?"

They certainly can own the name "Hooters," so you likely wouldn`t be able to open up a competing company called "Shooters," doing exactly the same thing as Hooters. Maybe, but I doubt it.
TheJoeZone

posts: 13

Jun 12, 2009 8:19 AM ET    Quote  Report Abuse
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Thanks Craig.

 Let me try to explain what i`m doing without spilling the beans so to speak. I want to open a business in the personal care industry. Those performing the work will be attractive women.  I have a name / logo/ theme to go with my business. I then found out a franchise exists providing the same service also using attractive women.Thats where the similarities end. My name/brand is unrelated to theirs. They have a different theme than I do. Like you said, How can Hooters take ownership of "women in tight shirts" and own the process of "serving food and beverages".

There are so many franchises out there doing exactly the same thing.McDonalds, Burger King,  Wendy`s all sell burgers.  KFC, Popeyes, and Boston Market all sell chicken. Avis and Hertz all rent cars. You get the point.

With that being said, Is it a matter of "how" they sell the product that makes the difference? McDonalds and Burger king both  use mascots. Same product, both have a mascot , but each have a different theme.

I can relate with what you said about Hooters and Shooters. That scenario reminds me of the Eddie Murphey   movie "Coming to America" .Eddie worked at a burger place called McDowells.They didnt have the Golden Arches like McDonalds. The  had the Golden Arcs. I can see why that would be an infringement on a trademark.

Anyway, thats the scoop.I will keep on doing my due dillegence and see what happens. If anyone else has any input on this , please feel free to share.

Thanks for your help!

                      Joe (TheJoeZone)

TheJoeZone2009-6-12 9:3:28
CraigL

posts: 9051

Jun 12, 2009 5:59 PM ET    Quote  Report Abuse
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Joe,
Based on your posts, it sounds as though you would do well to invest a bit of money in talking with an attorney specializing in copyrights and so forth. It`s a fine line, hard to make "black and white," and you would get personally specific advice. :-)
patentandtrademark

posts: 1332

Jun 15, 2009 1:38 PM ET    Quote  Report Abuse
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i agree with craigl

-------------------------

James Lindon, Ph.D. Patent Attorney
Lindon & Lindon, LLC
Cleveland, Ohio
Patents, Trademarks, Copyrights, Pharmacy Law, Litigation
[this is not legal advice - provided for discussion only]
Intellectual Property for the Individual and Small Business: Identify, Protect, Enforce, Defend.
"Fools rush in where angels fear to tread."
http://www.LindonLaw.com
CraigL

posts: 9051

Jun 15, 2009 7:37 PM ET    Quote  Report Abuse
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And James is a lawyer! :-) I`m not!
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