Trade mark protection before launching a franchise in Croatia

A recognisable name is not the same as a protected trade mark. When you expand an existing business through a franchise network, you promise franchisees the right to use a brand identity in which they will invest their own money. Before signing your first franchise agreement, you therefore need to check what is protected, who holds the rights and whether they can lawfully authorise franchisees to use them. These checks reduce the risk of having to change your name, signage and packaging after opening.

1. List your brand assets and check who holds the rights

Start with a simple list: your business name, the name of each concept, your logo, slogan and own-brand product marks. For each item, record whether it is in use, whether a trade mark application has been filed or registration granted, which territory it covers and whose name it is in.

Entering a company name in the court register or registering an internet domain does not replace trade mark registration. These are separate legal and administrative procedures. Having traded under a particular name for years does not, in itself, mean that you have a registered exclusive right to that name for the goods or services you intend to offer.

In particular, check whether the trade mark is owned by the founder personally, an associated company or the company that will act as franchisor. If the franchisor does not own the mark, it must have appropriate authorisation that also allows it to grant franchisees the right to use it. A corporate relationship alone is not enough.

For logos, also check the agreement with the designer. A paid invoice for the design does not necessarily settle all rights to exploit the copyrighted work. The documentation should cover the intended uses and any necessary adaptations, including use across the franchise network.

2. Check name availability and the scope of protection

Before filing an application, search for earlier trade marks that are valid in Croatia. Relevant rights include national trade marks, European Union trade marks and international registrations effective in Croatia. National procedures are handled by Croatia’s State Intellectual Property Office, while European Union trade marks are registered by the European Union Intellectual Property Office, or EUIPO.

Your search should not stop at identical names. Similarities in sound, appearance or meaning may also matter, alongside similarities between the goods and services covered. A trade mark specialist should assess the findings before you make a substantial investment in your brand identity and begin selling franchises.

Next, compare the existing list of goods and services covered with what franchisees will actually offer. For example, protection for a name used for food and drink services does not automatically provide appropriate protection for every packaged product you plan to sell under the same name.

Also consider whether to protect the name as a word mark, the graphic design, or both. Registering a particular logo does not necessarily provide the same protection as registering the name itself. The scope of the application should reflect your business plan, not just the current appearance of your premises’ signage.

3. Align trade mark protection with Croatia’s legal framework

Croatia has no dedicated law comprehensively regulating franchising, nor a specific statutory requirement for a franchise pre-contractual disclosure document. The contractual relationship is governed primarily by the Civil Obligations Act, alongside other relevant legislation.

The key legislation here is the Trade Marks Act. For European Union trade marks, Regulation (EU) 2017/1001 on the European Union trade mark also applies. Depending on the terms of the arrangement, Croatia’s Competition Act and European Union competition rules may be relevant. Copyright issues relating to logos are considered separately under the Copyright and Related Rights Act.

The European Code of Ethics for Franchising can serve as a good-practice standard, but it is neither Croatian law nor a substitute for checking intellectual property rights.

Make a clear distinction for prospective franchisees between a filed application and a registered trade mark. An application does not guarantee registration. If proceedings are still pending or a dispute exists, explain this transparently and address the consequences of any refusal or loss of protection in the agreement.

4. Set rules for use and maintain your rights

The franchise agreement should precisely identify the trade marks, their owners, registration details and the permitted scope of use. If several marks are involved, a clearly organised schedule to the agreement is useful.

The agreement should answer specific questions:

• At which locations, on which products and through which digital channels may the franchisee use the marks?
• May the franchisee register a domain or create a profile containing the name?
• Who approves changes to the logo, packaging and local advertising?
• How should the franchisee report suspected unauthorised use, and who decides whether to take legal action?
• What happens to the marks and branded materials when the right to use them ends?

Visual identity guidelines should explain how to apply the branding in practice, while the agreement should set out rights and responsibilities. Internally, assign someone to monitor renewal deadlines, changes of ownership and evidence of genuine use of the trade mark. Registration is not a task you can forget about once the certificate arrives.

Practical takeaway: before offering your first franchise, prepare a trade mark file containing a list of marks, evidence of ownership and authorisations, the scope of protection and rules for use. Resolve any outstanding rights issues before a franchisee orders signage for their premises.