Copyright in franchising: can you share artwork with franchisees?

When preparing to launch your first franchise, it is easy to overlook the difference between possessing artwork files and having the right to let other businesses use them. A logo, photograph, menu or interior design may have been created solely for your own company’s use. Before making these assets available to partners in your franchise network, check whether the licences cover the intended use. Paying an invoice or receiving the source files does not automatically give you that right.

1. List the assets that other businesses will use

Start by listing everything you intend to provide to franchisees to maintain a consistent brand identity. Look beyond the logo. Check product photographs, illustrations, advertising templates, website copy, videos, packaging artwork and original elements of your premises’ design. Copyright protects creations that meet the statutory criteria for a copyright work; not every simple sign or standard shop layout is automatically protected.

Create a brief record for each asset:

• who created it and who granted you the licence;
• where the contract or licensing terms can be found;
• which uses, territories and periods your permission covers;
• whether independent franchisees may use it;
• whether the work may be modified and whether you can grant others permission to use it.

Flag any assets for which you have only an invoice or an email attachment. This does not necessarily mean you are using them without permission, but it may be difficult to prove the agreed scope of use. Prioritise the materials a new outlet needs in order to open: signage, the core product or service offering, and launch advertising.

2. Distinguish between trade mark protection and a copyright licence

The Czech Republic has no specific franchising act or mandatory state approval process for franchise concepts. Franchise agreements are generally concluded as contracts not specifically defined by statute under Section 1746(2) of the Civil Code, Act No. 89/2012 Coll. The Civil Code’s licensing provisions and the Copyright Act, No. 121/2000 Coll., are particularly relevant to the use of creative assets.

Registering a logo as a trade mark under the Trade Marks Act, No. 441/2003 Coll., does not in itself resolve copyright issues relating to the artwork. You may own the trade mark but still need an adequate licence from the person who created its visual design. These are two distinct layers of legal protection that must be checked separately.

Even with commissioned work, it is unsafe to assume that use is unrestricted. Unless otherwise agreed, the statutory rules take the purpose of the contract as their starting point. Commissioning a leaflet for your own café therefore does not necessarily cover its adaptation and use by numerous independent partners.

For works created by employees, the employer generally exercises the economic rights if the work was produced in the course of the employee’s duties and no different arrangement was agreed. An external graphic designer, however, is not an employee simply because they have worked with you for a long time. An agency must also have secured rights from the actual creators sufficient to cover what it promises you.

3. Secure the permissions your franchise network needs

Before negotiating amendments, describe how the assets will actually be used. Will partners print posters themselves? Will they change the address, language and photographs in a template? Will they use the materials on their own social media accounts? Will their local advertising agencies receive the files? Specific scenarios are more useful than a general request to ‘transfer all rights’.

Then clarify the following points in particular with the creator or another authorised licensor:

• Sublicensing: whether you may grant franchisees permission to use the assets, and to what extent.
• Types of use: for example, print, outlet signage, websites and online advertising.
• Modifications: which changes may be made and who is authorised to approve them.
• Territory and duration: whether the licence matches the network’s planned operations.
• Fees: whether broader use requires an additional payment and how it will be calculated.

The right to grant sublicences must be agreed in the licence agreement. An alternative may be a direct licence between the rights holder and each franchisee. This requires a clear process to ensure that partners do not start using the materials before obtaining their licences.

For photographs of people, also distinguish between the copyright licence and permission to use the person’s likeness. The photographer’s consent does not automatically address the rights of the person photographed. Similarly, check any specific terms governing stock photographs and other third-party assets incorporated into the final artwork.

4. Share only approved materials, with clear rules

Turn the findings of your review into a simple library of approved assets. For each file, state the permitted uses, any licence expiry date and a contact for queries. Keep older versions and those with unresolved rights issues separate so that partners do not use them by mistake.

The franchise agreement should define the scope of the partner’s permission and how it relates to the duration of the franchise relationship. Practical guidelines can specify which parts of templates partners may change and what process they should follow when commissioning their own artwork. If a franchisee commissions new photographs, do not assume that head office may automatically make them available to the rest of the network.

Before sharing the assets for the first time, run a trial project: have a local poster and a social media post created using the approved materials. At each stage, check who is using the work and which permission allows them to do so.

Practical takeaway: First document your rights to the essential materials, then share them with partners. A well-organised asset library and expressly agreed sublicensing rights help your franchise network grow without unnecessary disputes with creators.