Whether Shania chooses to start her own business or buy an existing business both require commitment and dedication. Investing in a franchise and opening an independent coffeehouse have risks and rewards that differentiate them from one another, mainly level of control over business decisions. Franchising is a contractual agreement between the licensor and franchisee to conduct business with their trademark and trade name to distribute goods and services (International Franchise Association, 1961). Independent business is privately owned and free of control, similar to a sole proprietorship. Shania found two franchise opportunities in Colorado that both offer training with limitations to A) adopt the franchise name and trade dress, and B) move …show more content…
Continuous changes in technology and development, tapping into different markets to refine and personalize consumer taste is an advantage of an independent owner. By being responsive and productive to those changes can increase competition and growth. To manage and sustain that growth and clientele, Shania must ensure that she protects the business name and reputation. Trademark infringement can be an issue in the long run and should consider trademarking “The Gathering Place,” as a sense of security and protection. Part of Shania’s responsibility as an owner is brand recognition. Having a trademark and name that appeals to consumers will help differentiate the business from competitors. Shania mentioned that she wanted to create a Christian coffeehouse called “The Gathering Place.” According to the Colorado Secretary of State, four business have the same name Shania desired, but none have an existing trademark to that name. However, because many businesses share that same name, I would advise Shania to either register for a trademark, or to pick a new name. Colorado has at least two community-based businesses with a similar trade name, which may cause customer confusion. Well-conceived and unique logo or slogan that creates its own memorable identity to visually communicate a meaning behind the brand will help eliminate confusion and will associate the logo with the coffeehouse. If Shania chooses to not trademark “The Gathering Place” she is at risk for possible legal ramifications in the