QFA: Protect your brand before offering franchises

In guidance published on 7 November 2026, the Quality Franchise Association (QFA) stressed the importance of clear trade mark ownership, registration and permission to use a brand before offering franchises in the Philippines. For the franchise sector, this means establishing not only a business’s identity, but also the legal basis for allowing prospective partners to use it.

Register the trade mark, not just the business name

According to the guidance, the principal law governing trade marks is Republic Act No. 8293, or the Intellectual Property Code, as amended. Under this law, trade mark rights are acquired through valid registration.

The distinction between a pending application and a registered trade mark matters. The QFA clarified that an application awaiting approval does not amount to a registered trade mark. This status should be accurately disclosed to prospective franchisees, rather than implying that the process is complete.

Registration of a franchise agreement is also separate from trade mark registration. Executive Order No. 169, series of 2022, sets out minimum provisions and registration requirements with the Department of Trade and Industry (DTI) for agreements within its scope involving franchisees that are micro, small or medium-sized enterprises. This does not replace trade mark registration.

The guidance focuses on preparation under existing rules, rather than introducing a new franchise law.

Compile an inventory before expanding

The QFA suggests that businesses start with a complete inventory of the brand assets they intend to allow others to use. These include the business name, logo, distinctive product names and other important trade marks.

For each asset, businesses should record the applicant or registered owner, the application’s status, and the goods or services covered. They should also gather documents supporting these details.

Trade mark searches are also recommended before expansion. At the same time, businesses should check whether their applications or registrations match what they actually offer. Simply having a document is not enough if its coverage of the goods or services to be offered through the franchise is unclear.

In practical terms, this inventory should establish the link between the trade mark, its owner and the authority to grant permission to use it. Any gaps in documentation or authorisation should be resolved before a new partner commits funds.

Keep trade mark protection valid

Protecting a trade mark does not end with its initial registration. According to the QFA, businesses should appoint someone to monitor deadlines for responding to the Intellectual Property Office of the Philippines (IPOPHL), filing the required declarations of actual use and renewing registrations.

Appropriate evidence of use should also be retained. Examples cited in the guidance include photographs of products and packaging, as well as relevant sales records. Current requirements and deadlines should be checked before filing.

For a business preparing to take on franchise partners, this means assigning clear responsibility. Tracking documents and deadlines is part of maintaining the right to authorise use of the trade mark, not merely a task to complete before opening a new outlet.

Permission to use a trade mark must include quality control

The agreement should specify which trade marks may be used, in which territory, for how long and for what purpose. It should also make clear who will approve signs, packaging, advertisements and web pages using the business name.

Under the Intellectual Property Code, a trade mark licence must provide for effective control by the licensor over the quality of the goods or services. That control must also be exercised in practice. The QFA stressed that a signature alone is not enough: checks and corrective action are needed when misuse occurs.

The agreement should also set out how imitation by other businesses will be reported, who will decide on legal action, and how use of the trade mark will cease when permission ends. Franchisees should not be allowed to register the trade mark in their own name without a clear legal basis.

Practical step: Before offering franchises, compile an inventory of trade marks, evidence of ownership and the scope of permission to use them. Resolve any gaps before accepting investment from a new partner.